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- 1 Many traders are positively inclined towards PancakeSwap after its recent uptrend.
- 2 The 50-day EMA, which is at $2.1541, will provide some support for the bullish traders.
- 3 A recent vote to reduce CAKE emissions resulted in a 6% token gain.
PancakeSwap’s (CAKE) growth trend has been mixed, with a decrease of 22% in performance year-to-date (YTD), but a significant push in the last six months. The outlook of the general market is one of the key reasons driving the sentiment around CAKE.
Why Did the CAKE Token Surge Suddenly?
The current surge is due to the announcement of reward distribution by PancakeSwap to its community members. This reward is particularly for those who stake to support the protocol. Another reason for the resurgence of CAKE is the future of decentralized exchanges. Here, PancakeSwap holds a unique market share.
Although PancakeSwap (CAKE) is independent, it is known to benefit from the success of the Binance exchange and its ecosystem. As the pioneering DEX on the BNB Chain protocol, PancakeSwap maintains the first-mover advantage over other competing protocols. A recent vote to reduce CAKE emissions resulted in a 6% token gain.
Many traders are positively inclined towards PancakeSwap due to this historical tag. Typically, people who want to avoid high gas fees on Uniswap explore PancakeSwap as an alternative. It is worth noting that PancakeSwap is transitioning from being just a DEX, as it recently launched a play-to-earn game title. It is committed to its burn program to deepen the deflationary status of CAKE.
Technical Analysis and Prediction of the CAKE Coin Price
Bitcoin has recently crossed the $43,000 mark, causing other cryptocurrencies like CAKE to gain momentum. CAKE coin price is showing signs of a bullish trend continuation pattern. The trendline is marked above in the picture with a blue line.
With an immediate resistance at $2.723, CAKE might experience a breakout rally soon. The recent surge has pushed the CAKE coin prices up by 13.71% over the past few days. Bullish investors are optimistic about the CAKE coin price, and traders eagerly anticipate a bullish breakout, which could present a promising investment chance.
Support and Support
The immediate support level is at $1.896, but before that, the 50-day EMA, which is at $2.1541, will provide some support for the bullish traders. Meanwhile, coming down to RSI, it has bounced back from the oversold level of 92 and is currently hovering at 53. The price prediction for the current price action will be bullish.
Conclusion
PancakeSwap (CAKE) is independent, it is known to benefit from the success of Binance exchange and its ecosystem. PancakeSwap is transitioning from being just a DEX, as it recently launched a play-to-earn game title. Bitcoin has crossed the $43k mark, which is causing cryptocurrencies like CAKE to gain momentum and it resulted in an uptrend.
Technical Levels
- Support Levels: $1.896 and $1.108
- Resistance Levels: $2.723 and $3.586
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.