What Is PancakeSwap?
PancakeSwap is a decentralized exchange that has been short in existence but has swiftly become arguably the most popular DEX out there. The project’s team quickly embarked on Binance Smart Chain (BSC) to deploy its DEX on it because transaction fees on BSC are so very low compared to Ethereum.
The low transaction fees of BSC have been the biggest selling point of PancakeSwap that has immediately brought it loads of trading volumes and allowed it quickly climb the ranks of decentralized exchanges, leaving Uniswap behind.
PancakeSwap exchange has also launched its native token under the ticker of CAKE like its rivals did before. CAKE is a BEP-20 standard token deployed on Binance Smart Chain. CAKE can be bought on PancakeSwap and Binance.
It was listed there in March and has since enjoyed strong growth, going from the starting price of $9.55 upon the listing to a summit of 44.278 in May. And now we are going to analyze the CAKE/USDT price chart provided by Binance.
Retrospective Price Analysis of CAKE
At the start of its trade on Binance, CAKE/USD was pumped and dumped as it regularly happens with lots of new tokens. At the end of March, the CAKE steaded at the $10 mark. On 22nd March, the pair began going up at a more moderate pace. There was a bit of resistance found at 19, with a bit of reversal taking CAKE/USDT down to 15.6.
CAKE/USDT on a 4-hour chart
After that, CAKE/USD continued going north with a bit of a downside twist between 26.2 and 22.5. At that time, the cryptocurrency market was looking very bullish across the board, and the upswing drove up a vast amount of digital currencies and tokens. So, CAKE largely enjoyed the bull ride.
When the market cooled down and the prices went down across the board, CAKE was no exception. At the start of the downside reversal, CAKE/USDT set a technical daily level at around 36. At the time, the level supported, but being close to the pair’s all-time high, it was soon turned into resistance as the market went swiftly down. Later on, closer to the end of May, CAKE/USDT established two daily support levels: at 18.05 and 14.57.
CAKE/USDT Price Prediction
Given the current context in the CAKE/USDT chart, buying orders would be the best mid-term bet, the 36.00 resistance level being the target level for a take profit. Speaking of buying levels, the two daily support levels at the bottom of the chart would both be very good and potentially lucrative trading opportunities. Especially so the 18.05 level as it virtually coincides with the 0.236 Fibonacci retracement level.
CAKE/USDT on a daily chart with a Fibonacci retracement
However, the CAKE/USDT pricing history is yet too short to ignore hourly timeframes in the search for entry levels, and we are also going to view the opportunities seen on the 4-hour chart of CAKE/USDT.
CAKE/USDT on a 4-hour chart
Here we can see 4-hour technical levels put in the red lines. As the lower area of the chart is of particular interest at the moment, the 4-hour level at 15.9 is a level that would be reasonable to place a buying order at.
As for particular take-profit levels on a buying order, the 4-hour levels placed above are too tightly spaced between Fibonacci levels and will only be misleading in the term of 3 – 5 months. So, the daily level at 36.00 would be an ideal option with a palatable level of risk and a substantial percentage of profit in a positive scenario.
If you want to know how to buy PancakeSwap crypto and learn more about PancakeSwap exchange, you can follow these links.
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