• CAKE Technical Analysis: Price is nearing the $23.089 resistance level

  • PancakeSwap is a Binance Smart Chain-based decentralized exchange (DEX) founded by anonymous developers who clearly love pancakes. It is a decentralized finance (DeFi) — automated market maker (AMM) application that allows users to exchange tokens, providing liquidity through farming and earning fees in return. Tokens are issued when funds are added to the liquidity pool. These tokens can then be used to reclaim their pool share as well as a portion of the trading fees. These LP tokens are referred to as FLIP. Users can also farm additional tokens such as CAKE and SYRUP on PancakeSwap. Users can deposit LP tokens on the farm and receive CAKE as a reward.

    Let’s take a look at CAKE’s technical analysis.

    Previous Results

    CAKE has been trading at $11.83 since July 19, 2021. CAKE closed at $20.899 on August 15, 2021. For nearly a month, CAKE has been a whale’s feeding ground, with the price increasing by approximately 77 percent. CAKE has traded between $21.06 and $22.07 in the last 24 hours. The increase has been in the neighborhood of 1%. PankaceSwap has a market cap of $4,647,703,458 and a 24-hour trading volume of $553,483,821, a 24 percent increase in the last 24 hours. CAKE has a circulating supply of 210,371,192.58. This high turnover indicates that HODLers have a very positive attitude.

    Technical Analysis of CAKE

    CAKE is currently trading at $22.108. The price has risen from the day’s opening of $21.326. For the past month, the market has been bullish.

    The RSI indicator is currently at or above 80%. It demonstrates the overbought sentiment. The most recent drop was on July 20 at 32%, and it has only been moving upwards since then.

    The MACD and EMA signal lines are clearly positive. Furthermore, the signal line has crossed over the MACD line, indicating a bullish crossover. As a result, the overall market momentum is shifting bullish. As a result, CAKE remains a favorite.

    In summary, based on both oscillators, we can conclude that the price may continue to rise. Price reversal may not be an issue today or tomorrow.

    Today and Tomorrow

    The price is already approaching Resistance Level 3 of $23.089, and once it crosses Fibonacci Resistance at $27.341, we can begin to be more cautious about the price movement.

    The price is currently at the Fibonacci retracement level of $21.65. If the bulls continue to be strong until the end of the day, the price is likely to rise above the $28.293 level.

    In July, the platform made headlines by announcing the integration of its mainnet with Chainlink VRF (Verifiable Random Function). The integration is critical for providing provable fairness to PancakeSwap Lottery V2. In addition, BonFi has finally announced that the BNF token will be available on PancakeSwap. The PancakeSwap platform is currently anticipating the launch of the PancakeSwap premium liquidity staking pool on the BonFi Blockchain platform.

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