thecoinrepublic.com
- 1 PancakeSwap is currently trading at $3.65 (press time) with a decrease of 0.59% intraday.
- 2 The 24-hour low for CAKE was $3.64 and the 24-hour high was $3.68.
- 3 The current PancakeSwap price is below the 20-, 50-, 100-, and 200-Day EMAs.
PancakeSwap Overview:
PancakeSwap is a decentralized finance (DeFi) application that enables users to swap tokens and provide liquidity via farming, earning fees in return. PancakeSwap operates on an automated market maker approach where users trade against a liquidity pool. Users who contribute money to the pool receive Liquidity Provider (LP) tokens known as FLIP, a percentage of the trading commissions, and their share of the pool in return.
Also, by depositing LP tokens and receiving CAKE as a reward, PancakeSwap users can harvest other tokens like CAKE and SYRUP. Users can also stake LP tokens to earn CAKE, stake CAKE to earn tokens of other projects, provide liquidity to the exchange and earn fees, and trade BEP20 tokens. Users can stake their tokens to earn rewards and participate in a lottery with the chance to win Non-Fungible Tokens (NFTs) that can be traded for CAKE or kept in a wallet.
PancakeSwap Technical Analysis :
The CAKE/BTC pair saw a decrease of 0.32%, with a trading value of 0.000131 BTC. However, CAKE token suffered a significant decline of 56.75% last year, indicating. With the market experiencing strong selling pressure, CAKE token remained near its primary support level of $3.125 at the end of 2022.
As the sellers try to enter the trade, Pancake Swap investors may notice a trend reversal. Cryptocurrency is deflating investors’ aspirations. The price of the coin is varying in the area that the bears like. The bulls must move in order to raise the price and the level of investor optimism. Bulls must work harder to help the currency attain its full potential. The downward spiral may be pushed by the bears, and CAKE may begin to lose its promise.
CAKE’s volume dropped by 36.63%, intraday. The continuous drop in volume shows that the short-selling pressure is increasing. The market cap-to-volume ratio is 0.0474. For investors, the fact that purchasing is growing may be a comfort. Investors could choose to shift to either side. Additionally, this will present a chance for new buyers to join the market.
PancakeSwap price forecasts state that buyers’ behavior will have a significant impact on how CAKE performs going forward. The token may enjoy a big upward bounce over the daily time frame chart if buyers are successful in pushing the price of CAKE past its primary resistance mark of $3.95. This indicates that the price of CAKE may perhaps increase soon if there is sufficient demand from the buyers.
RSI is decreasing in the oversold zone and might show a negative crossover which indicates that the sellers are in majority and pushing CAKE downwards. This suggests the strength of the current bearish trend. The current value of RSI is 44.69 which is below the average RSI value of 45.32.
Although the MACD and the signal line are declining, they are still delaying a clear crossover over the daily chart that would corroborate the RSI claims. During the trading session of the day, investors need to keep an eye on every movement on the charts.
Conclusion
PancakeSwap is a decentralized finance application that enables users to swap tokens and provide liquidity via farming and earning fees in return. Despite the current bearish trend, the future of CAKE largely depends on buyer action in the market. If the buyers can push the value of CAKE past its primary resistance level of $3.95, the token may experience a significant upward rally over the daily time frame chart. However, the current RSI trend suggests that the strength of the current bearish trend may continue.
Technical Levels
Resistance Levels: $3.95 and $4.69
Support Levels: $3.12 and $2.90
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.