PancakeSwap has narrowed the losses in the past one week to 2.45%
The decentralized exchange protocol is backed by Binance
CAKE faces resistance at $4.12 but could break out if the momentum remains strong
PancakeSwap CAKE/USD is a cryptocurrency to watch as prices start to shrug over the latest losses. The cryptocurrency’s losses in the last one week stood at just 2.45% as of Wednesday. The small losses were after the last three days’ recoveries. The token trades at $3.92 after touching a low of $3.6 on August 20. The token is stalling but still pointing higher.
PancakeSwap has been making strides in the DeFi sector despite ranking below its peers. The decentralized exchange is backed by Binance, the largest crypto exchange. Binance Labs has also invested in PancakeSwap, a further indication of the trust it has earned. Its native token has, however, been subdued, and its price has largely been driven by market momentum.
CAKE approaches resistance as price overcomes recent drop
Source – TradingView
On the daily chart, CAKE is bullish below the $4.12 resistance. The token is keeping an uptrend which started in mid-June. The momentum indicator shows that the token’s latest bearish momentum is weakening.
CAKE will imminently hit the resistance as bull strength remains in place. A potential breakout will occur if the sentiment improves and CAKE continues to attract buyers. Still, at the low valuation, CAKE is attractive to long-term buyers.
If CAKE breaks above $4.12, the next level to watch is $4.8. We also need to monitor the prevailing crypto sentiment since CAKE has been following the market.
Summary
CAKE is recovering from the recent slump. The token eyes $4.12 resistance as the next level. A breakout of the resistance will depend on the crypto sentiment.
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