Lower volumes, steady price action – Should you still have CAKE?
So, you had been hoping to see some tasty beneficial properties after scooping up some CAKE at its latest lows. Now you might be questioning whether or not you made the fitting selection after it didn’t cook dinner up noteworthy beneficial properties.
CAKE continues 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 tip 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 is likely to be asking themselves is whether or not it’s nonetheless well worth the funding. The value motion has been very bearish since Might 2021 and Pancakeswap DEX has been going through heavy competitors. Newer and improved DEXs are actually 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 successful since mid-April.
Supply: Santiment
One may argue that CAKE’s bearish efficiency is basically because of bearish market situations over the previous few months. The general crypto-market sentiment has additionally leaned closely on the bearish aspect, therefore justifying CAKE’s huge value drop.
In line with 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.
Supply: Nomics.com
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 throughout the similar ball-park for the second half of Might, regardless of the buildup and upside in its MFI and RSI indicators.
Supply: TradingView
In CAKE’s protection, most of the high 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 tip of Might appears to have cooled down, but it surely did register in CAKE’s value motion.
The upside is that PancakeSwap continues to be among the many top DEXs by volumes and was one of many pioneers within the section. Maybe, these components might contribute to extra utility over time. The tip-of-Might efficiency may need been a litmus take a look at to see if there may be sufficient demand out there.
Maybe Pancakeswap volumes will enhance as markets get well from the newest crash. Such an consequence would doubtless breathe extra life into CAKE, permitting it to get well to increased value ranges.
