Key takeaways
- CAKE is up 4.5%, approaching the $2 psychological level.
- The derivatives data back the recovery as funding rates turn positive.
CAKE’S derivatives data support bullish movement
CAKE, the native coin of the Pancakeswap exchange, has added 4.5% to its value in the last 24 hours and is now approaching $2.0.
The rally comes as Coinglass’s OI-Weighted Funding Rate data shows that the number of traders betting that the price of CAKE will slide further is lower than that anticipating a price increase.&
The positive funding rate means that more traders are bullish on CAKE than bearish. The metric flipped positive on Wednesday and currently reads 0.0046%, indicating that longs are paying shorts.
In addition to that, Coinglass’s long-to-short ratio for CAKE reads 1.11 on Thursday, nearing the highest level over a month. The ratio moving above one indicates that more traders are betting on CAKE to rally higher.&
The bullish scenario comes after Pancakeswap announced earlier this week that the community had approved CAKE’s max supply reduction proposal.&
The max supply has been reduced from 450 million to 400 million, and burns consistently outweigh emissions.&
CAKE could rally towards $2.1
The CAKE/USDT 4-hour chart is bearish and efficient despite CAKE adding 4.5% to its value in the last 24 hours.&
CAKE’s price was rejected at the weekly resistance level of $2.13 on Saturday and declined by 10% earlier this week. However, it rebounded on Wednesday and is now approaching the $2.0 maerk once again.&
If CAKE continues its price recovery, it could rally towards the 50-day Exponential Moving Average (EMA) at $2.06.
The Relative Strength Index (RSI) on the 4-hour chart is 46, pointing upward toward the neutral 50 level, indicating fading bearish momentum. For the rally to be sustained, the RSI must move above the neutral level.&
On the flip side, if CAKE’s daily candle closes below the $1.88 support level, it could extend the correction toward the support zone around $1.79.
The post Pancakeswap price forecast: CAKE surges 4% as derivatives data turn bullish appeared first on CoinJournal.
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