Bullish Momentum Yet Again, 66% Up in a Week

CAKE coin (CAKE/USDT) is on an uptrend again after consolidating for almost a month. The coin made a surge of 66% in just a week.

The Suggestion to cut 300 Million in Supply

Decentralized cryptocurrency exchange, PancakeSwap suggested lowering the CAKE token’s 300 Million supply. The decentralized autonomous organization (DAO) behind PancakeSwap came up with this idea.

The voting period began on Thursday and will last until Friday. Over 99.95% of the CAKE holders, representing 70,000 votes, supported the proposal shortly after it was introduced. The reduction in CAKE token supply will enable PancakeSwap to pursue further growth across all deployments, according to a team member. 

Chef Mochi, head of PancakeSwap, stated in a Telegram message that the team believes the new and lower cap of 450 Million CAKE will be enough to attain market share across all chains and sustain the veCAKE model. The current circulating supply of CAKE is 388 Million.

The CAKE protocol received support from over 98% of voters for its proposal to restrict the total number of CAKE tokens at 450 Million. With 388 Million CAKEs in total supply at the moment, a lower cap is anticipated to aid the initiative in growing its market share throughout all channels.

Token inflation has been a problem for the CAKE community since its founding in 2021, and the team is now making efforts to lower the overall supply and steer clear of hyperinflation. 

The team behind the project believes that a 450 Million ceiling on CAKE production is fair since it guarantees enough supply for future expansion and allows the token to maintain its deflationary nature over time.

Technical Analysis and Prediction of the CAKE Coin Price 

The CAKE price chart is showing a bullish trend, having reached $3.596, which is slightly below its immediate resistance level of $3.586.

Investors and traders have gained confidence as the coin surpassed its first support level of $2.723. The RSI indicates that the price is already in the overbought zone. 

Overall, the price prediction for the CAKE coin is positive, however, the bullish investors are facing rejection at the current resistance level. 

Conclusion 

The community has supported the proposal of cutting 300 Million supply with 99.95% votes. The current CAKE coin trend is bullish but the investors may go through a short consolidation phase around the current resistance level

Technical Levels

• Support Levels: $2.73 and $2.14
• Resistance Levels: $3.56 and $4.28

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.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages ​​and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.