Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
- CAKE has been assortment-bound since the end of June.
- Most investors split positions amid uncertainty.
Crypto Markets posted mixed results in July amid growing uncertainty. Unfortunately, August looks no different Fitch’s recent downgrade of the US debt ratio should be taken seriously. Like US stocks, the crypto markets, especially altcoins, love it Pancake Swap [CAKE]posted short-term losses following Fitch’s move.
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The above development also came to an end Bitcoins [BTC] recovery as it briefly rose above $30,000 and then dipped. If BTC continues more uncertainty and selling pressure in the coming hours/days, a retest of the 2023 trendline support near $28.3k could be feasible.
Will bears break the low range?
Source: CAKE/USDT on TradingView
CAKE’s price action in a lower time frame was neutral and range bound throughout July. Price action fluctuated between $1.45 and $1.63 over the same period.
At the time of writing, short sellers broke through the $1.53 mid-range and targeted the low $1.45 range to lock in short-term gains. But they’ll have to clear the $1.50 hurdle to make the low range achievable.
In the South, the immediate support levels are the low range of $1.45 and $1.40 support. Put another way, the $1.40 – $1.45 range was a crucial price zone for bulls looking for discounted prices.
But the indicators of the price charts were not inclined to buy options at the time of writing. The RSI was below the neutral level, strengthening seller confidence. In addition, the CMF teetered below zero, indicating stagnant, below-average capital inflows for CAKE.
CAKE activity peaked in late July
Source: Sentiment
CAKE recorded increased user activity between late July and early August, as evidenced by spikes in active addresses (red). The peaks corresponded to upward price movements.
How many Worth 1,10,100 CAKEs today?
However, the average coin age of 90 days registered sharp declines and dropped lower. The conclusion was that recently accumulated CAKE tokens could be easily moved, confirming selling pressure in July amid range expansions.
Nevertheless, overall weighted sentiment improved over the same period. But this can only be good news for bulls if BTC registers another strong upward move.