CAKE Technical Analysis: Bears Takedown The Year-Long Support of $10

The CAKE coin price is under extreme selling pressure evident by the breakout of $10, the year-long support level. Will it reach $5? PancakeSwap can be described as an automatic market maker (AMM) -A decentralized finance (DeFi) application that allows users to trade tokens for liquidity through farming and earning fees for the exchange. PancakeSwap lets users exchange BEP20 tokens, supply liquidity to exchanges, and receive fees. You can stake tokens of LP to earn the CAKE token and stake the token in order to make more money. Let us move ahead to read about PancakeSwap technical analysis. Past Performance of CAKE The CAKE coin price action shows a downfall of more than 40% in the past ten days from $12. The downfall takes support at $7but breaks below the annual support level of $10. The breakout marks a bearish milestone as the support level had pushed the price higher multiple times in 2021. However, the bearish takedown increases the selling pressure and breaks the bullish morale. CAKE/USD Daily Chart CAKE Technical Analysis The CAKE coin price action forms multiple bearish engulfing candlesticks in the daily chart. Moreover, the long wick formations in the daily candles reflect higher price rejection. The crucial Exponential Moving Averages (50, 100, and 200) maintain a bearish alignment from December 2021. The 50-day EMA provides constant dynamic resistance to any bullish attempts in the correction phase. The MACD Indic...