PancakeSwap Price Prediction: CAKE Bulls Are Nowhere To Be Seen

• PancakeSwap has seen a decrease of more than 50% in TVL in the past few months
• Technical indicators of CAKE are favoring a strong bearish trend. It is down by 0.43% in the intraday session

PancakeSwap is a decentralized cryptocurrency exchange that allows users to trade assets in an efficient way. It was launched in 2020 and ever since it has seen a tremendous growth. It uses liquidity pools to facilitate the trades instead of relying on order books. PancakeSwap was launched by anonymous developers and since then it has seen high growth. PancakeSwap has a wide number of users ranging from professional to amateur traders. It allows users to trade BEP-20 tokens and they can also provide liquidity to exchange and earn fees. It also sees the launch of various new cryptocurrencies with high potential. The ecosystem has seen over 1.5 Million users in the last 30 days. Its Top Farm  APR is around 257%. Pancake Swap has an overall TVL of $2.13 Billion which saw a decrease of more than 50% in the past few months. It has generated $7.34 Million dollar fees in the last 30 days.

PancakeSwap social dominance has been seeing a slight increase in the past few days. CAKE has a market cap of $492 Million and is ranked 86th as per its market cap. The V/M ratio of CAKE suggests a consolidated momentum in price

Will CAKE Drop Below $2?

CAKE price has been in the grip of bears for the past few weeks. It has been forming bearish engulfing candles on the daily chart. It is currently trading near the value of $2.5 with a small gain in the intraday session. The upside trend of CAKE can see a halt near $3. Meanwhile the bounceback in the asset price can be seen from $2.If the price of CAKE drops below $2 then it will be difficult for it to see a recovery soon. The asset price is trading below the 50 and 100 Daily Moving Averages. There can be a negative crossover in the future which can push the price further below.

MACD of the CAKE hints towards a bearish trend in price. The Bars of the Histogram is also favoring a bearish trend in price.

Summary

PancakeSwap has observed a decline in TVL in the past few months. CAKE is currently in a bearish move but can move to a new high in the future.

Technical Levels

Major Support:$2

Major Resistance:$3

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss. 

Nancy J. Allen is a crypto enthusiast and 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.

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