CAKE Price Prediction: Is a Breakout Nearing?

By:

Updated: Aug 4, 2022, 14:27 UTC

CAKE has jumped 15% in the last seven days after surging to the $4 price level at the end of last month

Key Insights:

CAKE is up nearly 3% in the last 24 hours and over 28% in the last 30 days.
The token has continued to trade within the $2-$4 price range since mid-May.
CAKE ranks 73rd in the list of cryptocurrencies worldwide by market capitalisation at $568 million.

Although it has not shown any mammoth gains recently, CAKE has been trending after jumping 15% in the last seven days and over 28% in the last 30 days.

Earlier this year, a governance proposal issued by the PancakeSwap team passed with a 98.8% majority who favoured the second iteration of its tokenomics roadmap. However, this development has not had much of an effect on CAKE and it has continued to trade within the $2-$4 price range since mid-May.

PancakeSwap is a decentralised finance (DeFi) application that is somewhat similar to UniSwap in that users can swap their coins for other coins through a process that does not require order books or an intermediary company to facilitate trading.

Price Action

CAKE started its journey at $1.1179 on September 29, 2020, yet it ended up closing the year at $0.624. The token stayed below the $1 mark until January 24, 2021 when it reached $1.2171.

The PancakeSwap token then almost quadrupled in value by February 2021 when it skyrocketed to the $18 price level, before slowing down in March. Another rally came in mid-April to $26.25, followed by a climb to $33.35 on April 26. The token then achieved its all-time high (ATH) price of $44.18 shortly thereafter on April 30.

CAKE 040822 Weekly Price Chart

A strong correction followed and CAKE plummeted to $12.86 by May 23 – a 70% decline from its all-time high price. June and July did not prove much better for the coin, but the PancakeSwap crypto did see some sustained price activity above $20 in August. Following a drop back to the $18 price level by late September, CAKE ended up closing 2021 at a meagre $12.04.

After a disappointing performance in January and February this year, PancakeSwap’s Mini Program launched on the Binance mobile application in March which led the coin to reach $9.7297 on April 3. However, CAKE had retreated to the $4 price level by mid-May and on June 16, it was trading at a low of $2.5465.

CAKE is currently trading at $4.01 and ranks 73rd in the list of cryptocurrencies worldwide by market capitalisation at $568 million. Its price is up nearly 3% in the last 24 hours with minor potential of a breakout. Resistance is at around $5 and support can be found at $2.7.

CAKE 040822 Daily Price Chart

Technical Indicators

Technical analysis shows that short-term sentiment on CAKE is neutral, with 16 indicators displaying bullish signals compared to 9 bearish signals at the time of writing.

The daily simple and exponential moving averages (EMA) are giving mostly buy signals, while the relative strength index (RSI) stands at 64.9.

An RSI reading of 30 or below indicates an oversold or undervalued condition, while a reading above 70 would suggest the asset is becoming overvalued or overbought.

In terms of a PancakeSwap crypto price prediction, CAKE could see its price falling to it’s latest support levels at $2.331 by September 2022,

About the Author

Mohadesa Najumiauthor

Mohadesa Najumi is a British writer who has worked within crypto, forex, financial technology, and the stock market industry. Mohadesa received her MSc in Political Science and International Relations at the University of Amsterdam.