The bearish momentum is declining the CAKE price.
Indications of bullish run ahead
CAKE’s new proposal.
PancakeSwap is an automated market maker (AMM) – a decentralized finance application that allows users to exchange tokens, providing liquidity via farming and earning fees in return. The PanakeSwap token CAKE is a BEP20 token that originally launched on binance smart chain. The main function of CAKE is to incentivize the liquidity provision to the PancakeSwap platform. CAKE can also be used to enter a lottery on PancakeSwap.
While analyzing the market for CAKE it gives us an idea of the downtrend over the short and long term while sideways on hourly (4 hrs) time frame. The current price for one CAKE is $4.40 with a decrease of 0.36% in its market capitalization in the last 24 hrs. It has a volume of 101 million with an increase of 4.06% in it and a market cap of 1.2 billion. The volume market cap ratio is 0.07809. The price made a higher high of $4.69 in the intra day trading sessions. The CAKE/BTC pair has a value of 0.0001496 with an increase of 2.15% in it. The exponential moving average has a value of $4.97 and the volume indicator has a value of 256.7k. It looks like bears are dominating the market but from the past few days we can see the bulls are also getting involved and both bulls and bears are battling to take over the market. On 12th of May the price made a death dive and just touched the $3 support.
While making analysis for the hourly graph (4 hrs) the indicators such as MACD gives a signal for a bullish run as the MACD line makes a positive cross over the MACD signal line and both are constantly moving up and is near to the histogram line to cross. Nearly same with the relative strength index which is currently below 50 but is indicating the same and can soon cross the 50 mark.
Source: CAKE/USD by Tradingview.
PANCAKESWAP’s new proposal
PancakeSwap’s new proposal aims to cap CAKE supply at 750 million. With the current circulating supply of CAKE nearing 300 million, the new proposal seeks to limit the max supply to 750 million.
Momentum is bearish but inflecting. MACD line is above the MACD signal Line and RSI is below 50 but momentum may have bottomed since MACD histogram bars are rising, which suggests that momentum could be nearing another upswing.
Resistance: $5.5 (previous support) and $7
Support: $4 and $3.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
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