So, you have been hoping to see some tasty good points after scooping up some CAKE at its current lows. Now you might be questioning whether or not you made the appropriate alternative after it did not prepare dinner up noteworthy good points.
CAKE remains to be buying and selling inside its slim vary between $4.15 and $5, the place it has been caught for greater than 2 weeks. This, regardless of the bullish exercise seen in the direction of the top of Might. Whereas CAKE did register an uptick by as a lot as 15%, it was not sufficient to knock it out of the tight vary.
Has cake turned stale?
A possible query that many CAKE holders could be asking themselves is whether or not it’s nonetheless well worth the funding. The worth motion has been very bearish since Might 2021 and Pancakeswap DEX has been dealing with heavy competitors. Newer and improved DEXs at the moment are consuming into its market share and this would possibly have an effect on long-term CAKE demand.
To make issues worse, its social dominance and social volumes have taken a success since mid-April.
One may argue that CAKE’s bearish efficiency is basically because of bearish market situations over the previous couple of months. The general crypto-market sentiment has additionally leaned closely on the bearish aspect, therefore justifying CAKE’s large value drop.
In response to the Nomics crypto-index, PancakeSwap V2’s complete buying and selling quantity dropped considerably within the final 4 weeks. It peaked at $1.04B throughout Might’s market crash, however dropped to $106.85 million at press time.
On the time of writing, CAKE was buying and selling at $4.59 after depreciating by 1.55% in 24 hours. It has been buying and selling inside the identical ball-park for the second half of Might, regardless of the buildup and upside in its MFI and RSI indicators.
In CAKE’s protection, most of the prime cryptocurrencies solely registered a small value transfer and are nonetheless with the slim 2-week vary. The most recent value pump in the direction of the top of Might appears to have cooled down, but it surely did register in CAKE’s value motion.
The upside is that PancakeSwap remains to be among the many top DEXs by volumes and was one of many pioneers within the section. Maybe, these elements could contribute to extra utility over time. The top-of-Might efficiency might need been a litmus check to see if there’s sufficient demand available in the market.
Maybe Pancakeswap volumes will enhance as markets get well from the newest crash. Such an consequence would seemingly breathe extra life into CAKE, permitting it to get well to increased value ranges.