Below, you will see the key metrics that we have taken into consideration upon coming up with our CAKE price analysis and prediction.
Over the past few weeks, the cryptocurrency market seems to be making a rapid recovery. After the dip in the past 2 months, the crypto market has either remained stable or growing steadily. Right now, it seems that the digital asset industry might finally be on the up and up again. The price of CAKE has reduced by 33.8% in the last one year.
The question remains: will CAKE experience the same price volatility? We’ll find out soon in this CAKE price prediction article. But first, let’s have a look at what CAKE is.
What is PancakeSwap (CAKE)?
As appetizing as it sounds, PancakeSwap or CAKE doesn’t have anything to do with food. It’s an automated market maker and a decentralized finance (DeFi) crypto application. The platform is a Binance Smart Chain-based Decentralized Exchange (DEX) which is very popular nowadays. It’s regularly compared to Ethereum’s Uniswap and SushiSwap because of its many similarities, but it also has lots of additional features that allow users to earn rewards.
What is an automated market maker (AMM)? If you haven’t encountered this term yet, here’s what it means. An AMM is different from traditional centralized exchanges. It's possible to trade digital assets on this platform. However, there is no order book where you are matched with fellow traders. In an AMM, you are trading against a liquidity pool which is simply a bunch of funds thrown together in a large digital pile. It’s an essential element of Decentralized Finance (DeFi) protocols.
The liquidity pool is combined using other users’ funds. These users deposit them in the liquidity pool and they receive Liquidity Provider (LP) tokens in return. These tokens can be used to claim their share and a part of the trading fees.
CAKE is the native token of the PancakeSwap platform. It’s the BEP-20 Pancake token (CAKE). This token is one of many tokens that are used within the PancakeSwap protocol and is made available for token swaps within the exchange.
PancakeSwap (CAKE) Current Market Status
As of the time of writing this Aave Token price analysis, CAKE trades at $6.71 with a 24-hour trading volume of $213,6043,164. The price of CAKE has increased by 2.36% in the last 24 hours. Currently, the top cryptocurrency exchanges for CAKE are Binance, Kucoin, Bithumb, Mexc, Gate.io and others. Now, let’s go to the next part of this CAKE technical analysis for 2022.
That said, is CAKE a good cryptocurrency to invest in 2022? Let’s find out in this CAKE Token price prediction 2022 article.
PancakeSwap (CAKE) Price Analysis 2022 March
Currently, CAKE holds 57th place on CoinMarketCap. But will the latest upgrades, development, and changes in the CAKE blockchain help the cryptocurrency price to reach higher? Let’s proceed to the charts in this PancakeSwap price prediction article
The Relative Strength Index (RSI) measures the relative momentum in the magnitude of recent price changes so as to deduce oversold or overbought assets. The RSI value of 1-day chart is 54.13. This shows that CAKE is showing a strong trend since it is between 50 and 70. This value might trigger a bullish run soon since it seems that more buyers are repositioning as the value is moving towards the 70 RSI value which is the overbought region.
Keltner channel is a technical analysis indicator that is used to determine trend directions by measuring the volatility above or below the candlesticks. From the Keltner Channel signals for CAKE/USDT, we can deduce that the price of CAKE might experience a bullish run since it is consolidating at the middle of the channel. However, in the long-term, the price might get bullish since top cryptocurrencies like Bitcoin and Ethereum are already getting bearish from the recent bullish run.
VERDICT:
The point is, if the investors turn against the crypto, the bears might take over and push CAKE from its uptrend position. In simpler terms, the price of CAKE might decrease to almost $5.09, a bearish signal.
Meanwhile, the long-term CAKE price prediction 2022 is bullish. It has a high possibility of reaching new heights. However, that will only happen if it breaks many previous psychological resistances.
