PancakeSwap Price: Will CAKE re-test above $10 or drop under $9?

Saif Naqvi
Source: Pixabay

A significant network update has generated retail interest for PancakeSwap, with gains amounting to 14% in the last 48 hours. However, the price was at a critical juncture, and had to flip a key area to support to maintain momentum. With a potential barricade up ahead, investors were advised to trade the breakout instead of short-selling. At the time of writing, CAKE traded at $9.66.

MasterChef Update

PancakeSwap advanced steadily along with the broader market this week but an important network update generated greater interest among retail traders of late. Yesterday, the MasterChef V1, contract used by PancakeSwap to build staking pools, was updated to MasterChef V2 – a new protocol aimed at improving liquidity and giving more control over reward distribution.

The improved features struck a chord with retail traders, who flooded exchanges over the last two days to grab a slice of CAKE. At press time, trading volumes across exchanges rose by another 30% and came close to $300 Million. Data tracker LunarCrush further outlined bullish sentiment on CAKE, with the platform’s daily social volumes up by 45%.

PancakeSwap Daily Chart

Source: TradingView

Naturally, PancakeSwap’s daily chart highlighted the growing interest in the network. The price was up by nearly 30% from its 11 April close, logging seven consecutive bullish price candles.

However, at press time, the bulls got flagged after bearish pressure took over yesterday. With Bitcoin dropping under $40,000 briefly, the market was collective red but Pancakeswap maintained its position at a relatively higher range.

Source: Trading View

At press time, CAKE re-tested its support range at $9 before bouncing back in the charts. At the moment, the asset has formed a supply zone at the local peak hence, a possible shorting opportunity is on the charts. With Bitcoin massively dropping the ball, it is unlikely for CAKE to pull its own rally, hence a short-trade can be opened at $9.50. A take profit can be placed at the next support of $8.65, while a stop loss should be placed at $9.85 if there is a trend reversal.