Required containers
- PancakeSwap is holding above the key level at $1.55, indicating a move forward.
- A rise in the open interest rate along with favorable interest rates indicates that people are participating.
PancakeSwap (CAKE) is trading in the green above $1.60 on Thursday after finding support around the key level the previous day. Data from positive sources, as well as positive price action, suggest that CAKE may continue to rise in the coming days.
Bullish containers push CAKE higher
CoinGlass data reveals the largest increase in future Open Interest (OI) for PancakeSwap, which rose to $32.48 million on Tuesday and rose to $32.28 million on Thursday, the highest level since March 17.
The continuous increase in OI indicates that new funds are entering the market, which may encourage the price rally of CAKE.
In addition, currency prices are showing positive changes, supporting the bullish sentiment. CoinGlass’ OI-Weighted Funding Rate for CAKE changed on Wednesday and read 0.0056% on Thursday.
This shows that long positions are paying less for the position, which means that the market sentiment remains stable.
PancakeSwap price forecast: strong indicators point to another rally
The CAKE/USDT 4-hour chart is strong and active, as Pancakeswap is trading at $1.60 at press time.
The stock remains biased, supported by its position above the 50-day and 100-day Exponential Moving Averages (EMA) at $1.46 and $1.57, respectively.
The price of CAKE shows that strong demand is continuing, although CAKE remains below the 200-day EMA at $1.81, which is the upper limit of the correction system.
The Relative Strength Index (RSI) on the daily chart is at 64, which means that although the price has sustained strength, it may be vulnerable to consolidation as it approaches overbought areas.
Moving Average Convergence Divergence (MACD) remains positive, strengthening the short-term trend.
On the upside, the initial resistance is found at the 50% retracement of the latest at $1.67, followed by the 61.8% Fibonacci level at $1.78 and horizontal resistance near $1.79. The 200-day EMA at $1.81 represents a major barrier.
However, if the bears regain control, immediate support is at the 100-day EMA at $1.57, followed by a 38.2% retracement at $1.55.
A deeper pull could test the 50-day EMA at $1.46 and the 23.6% Fibonacci level at $1.40, with strong structural support appearing near $1.28.
