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CAKE Price Prediction: Is a Breakout Nearing?
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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.
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.
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.
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.
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