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$CAKE /USDT: Is the Pancake Flipping Back to Bullish?
It's a big week for CAKE! The community just officially voted to slash the maximum supply from 450 million down to 400 million tokens, locking in a "hard scarcity" narrative for 2026. While the macro vibe is turning deflationary, the 4-hour chart shows we’re currently in a tight battle between a recovery bounce and a bearish trendline.
Here is how I’m looking at the trade setups for today, January 22:
🚀 The Long Setup: Riding the Supply-Cut Rebound
The Narrative: Price is currently hovering near $1.96, just above critical support. If buyers can hold this ground and reclaim the EMA(25) at $1.97, the "scarcity" pump could trigger.
Entry Zone: $1.94 – $1.96 (Wait for a bounce off the local wick support).
Target 1: $2.02 (Breaking the short-term resistance).
Target 2: $2.14 (Major liquidity zone).
Stop Loss: Below $1.86 (Invalidation of the recent swing low).
📉 The Short Setup: Trend Continuation
The Narrative: Despite the news, the overall 4-hour trend remains bearish with the EMA(99) acting as a heavy ceiling. If the supply news is already "priced in," we might see a "sell the fact" dip.
Entry Zone: $1.98 – $2.02 (Shorting the rejection at the EMAs).
Target 1: $1.88 (Psychological support).
Target 2: $1.81 (Previous consolidation floor).
Stop Loss: Above $2.06 (Recovery of the daily pivot).
💡 Trader's Reality Check
PancakeSwap has achieved 28 consecutive months of net deflation, which is massive for long-term holders. However, in the short term, the market is "coiling". Watch the RSI(6)—it's sitting near 59, showing there is room for a move in either direction.
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