PANCAKESWAP Price Prediction: Will Cake Reach $5 This Year?

• CAKE/USDT gained 15% in the last 10 days
• CAKE/USDT is down 54% from the resistance level of $3.40.

PANCAKESWAP is trading at $1.56. The price is up 7.22% in the last 24H. The 24H trading volume saw a jump of 236.91%. The Total Market Cap is $334,217,152.

PANCAKESWAP is trading in the depths as it recently created a new all-time low at $1.30. It’s a big blow to the asset which had an all-time high of $44. The bear market has been harsh on CAKE’s investors. The Market is in a strong downtrend as the prices are 47% below the daily 200 EMA.

A Big Spike In Buying Volume 

The Daily Chart shows the dominance of the Bears as they push the prices lower. CAKE saw a sharp decline as it lost support at $3.40. Amidst the strong downtrend, The price saw a moderate recovery from its all-time low. A big spike in volume is showing the increasing interest of buyers at these prices.

The Bulls broke the resistance of $1.50 and the prices are moving up to the resistance of $1.77. A break of this level will shoot the prices up by 43% before getting resistance at $2.50. The recent bullish price action is reviving hopes for the Bulls. But it is advised to always consider a risk-management plan as the prices are volatile.

The 4h Chart Shows a short term uptrend

The 4H Chart shows Cake is following a minor uptrend. The market is making higher highs with increasing volume. The price broke out of a descending channel increasing the chances of the upside. PancakeSwap needs to cross the 200 EMA which will confirm the change of trend in the short-term. 

The price follows a steady trajectory to its resistance of $1.77. The Bulls are looking forward to breaking this resistance. This will further flame a bullish rally which can help CAKE recover further. CAKE is currently retesting the $1.50 level which has become a support. A Failure to sustain can lead to a decline of 13.29% towards the support of $1.30.

RSI: The RSI indicator is currently at 59.60 on the 4H and the RSI is attempting a bearish crossover. This indicates bullish to sideways conditions.

MACD: The MACD indicator has made a bearish crossover but the indicator is above 0.

The market will stay more biased towards the bullish side as long as the indicator is above the 0 line.

200 EMA: As observed, on the 4hr, the price is trading below the 200 EMA(exponential moving average) which acts as a significant resistance. This is a clear indication of a downtrend where the sellers are in control and for a trend reversal, the price must break and trade above the 200 EMA.

Technical levels

Support Levels: $1.50 – Support 1

     $1.30 – Support 2

Current Price: $1.56

Resistance Levels: $1.77- Resistance 1

          $2.50 – Resistance 2

Conclusion:

PANCAKESWAP is trading in a strong downtrend. The digital asset lost almost 95% of its value since last year. CAKE is trading around all-time lows. Although, some investors are looking at a rare opportunity as the prices are so low. The upside potential is extremely high. If CAKE managed a recovery to $5, the returns can be close to 230%. But it is important to consider the risks as the market is volatile and one should always follow good risk management to keep the losses in check.

Disclaimer:

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.