Well, for those of you who don’t know anything about CAKE cryptocurrency meant to add liquidity to the PancakeSwap. It is a decentralized automated marketplace that allows users to trade their holdings in crypto tokens and even earn additional income by collecting fees in return. PancakeSwap worked on the Binance smart chain and was developed on the same blockchain network.
Pancakeswap uses unauthorized cash pools that are controlled only using algorithms; there is no centralization authority. It operates fully automatically without any market marker being a Marketing Authorization. The story behind its name is just as interesting as its name, which takes its name from similarly-named networks named after food products in the past. The CAKE token is currently worth around $ 4.6 billion with a current value of less than $ 20.
Its BEP-20 token, PancakeSwap, is for reward and staking procedures. PancakeSwap ultimately delivers faster transaction speeds, with lower gas costs than any other device project built on the more expensive Ethereum network. The AMM offered by this decentralized exchange allows users to exchange their tokens for cash pools. Here, users can even lend their token assets to cash pools to earn digital tokens. These digital tokens can again be used to make even more profit.
PancakeSwap Price Analysis
Ideally, with such use cases and benefits, a cryptocurrency token should continue to rise in value as more and more users enter their network. But here we are seeing a movement of consolidation with very little buyer engagement. We have seen the rise and fall of this token to work in tandem with overall crypto sentiment.
The CAKE token can be seen consolidating for a brief period with resistance near the $ 27 levels and support at $ 11. The uncertain price action has added a prospect of distancing for buyers. With 200 DMA trades above the current value, the CAKE token will face strong resistance to become trending again. The only positive aspect that can be derived from this price movement is the closeness of the currently traded value to the 200 DMA level.
The increased popularity of the decentralized ecosystem will add more movement to this cryptocurrency. Still, such a move could take a long time to reverse the CAKE token chart. The RSI, as of now, can be seen as an improvement showing more strength around 50 levels. The volumes for a longer period remained in the same zone, and therefore, based on our PancakeSwap Price Prediction, it is to be expected that they will remain at similar levels.