Clementllk, a Santiment analyst, said that the price of CAKE was reaching a favourable purchasing opportunity.
In a 7 January analysis by Santiment, the pseudonymous analyst Clementllk assessed the CAKE token issued by PancakeSwap and concluded that it had established a technical pricing pattern. Historically, this pattern suggested a high success rate for purchasing chances.
Clementllk examined the price chart of CAKE and determined that the native token of the dominant decentralised finance (DeFi) on BNB Chain was developing a shark pattern. According to Clementllk, if CAKE reaches the price threshold of $3.45, the pattern will be successfully activated.
It would therefore present a fantastic purchasing opportunity for investors. Daily chart analysis of price movement shows that CAKE began the trading year of 2023 with a fresh bullish cycle. A glance at the location of the Moving Average Convergence Divergence (MACD) line relative to the signal line verified this.
On 2 January, the MACD line crossed the signal line in an uptrend. This is often seen as a positive indicator, signalling the start of a fresh upswing. Until the time of publication, CAKE’s price increased by 4%, proving this point.
Since the beginning of the current bull market, CAKE has been less volatile. This was shown by the alt’s Bollinger Bands (BB).
The gap between an asset’s upper and lower Bollinger Bands (BB bands) may be used to measure market volatility. When the space between the bands is great, it may suggest that the market is very volatile. On the other hand, when the gap between the bands is small, this may indicate that the market is less volatile.
Since the beginning of the year, the gap between the two bands on a daily chart for CAKE has gradually shrunk.
Although remaining below their respective neutral zones at press time, CAKE’s Relative Strength Index (RSI) and Money Flow Index (MFI) have been trending upward since the commencement of the current bull cycle. This suggested that purchasing activity has subsequently increased.
The fact that CAKE’s price was between the BB’s upper and lower bands, however, showed that the market was consolidating or indecisive.
When the price is in the centre of the bands, the market may be awaiting a catalyst or fresh information before moving.
It might also mean that there are an equal number of buyers and sellers in the market, and neither side is able to get the upper hand, resulting in the price of the item being relatively steady.
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