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- 1 PancakeSwap’s price is currently trading at $1.71 while witnessing a decrease of -5.31% during the intraday session.
- 2 Cake price trades below 20,50,100, and 200-day EMAs.
- 3 The year-to-date return of Cake is -47.17%.
Cake price has been in a strong bearish momentum after wrecking the support level of $3.32. After which price tried to form a support at $2.60 level and retraced to $2.76 level, which can be seen as a short-term pullback for the price to head further down.
Bears control the price, and Cake price cannot catch a breath to halt the momentum. The recent support was formed at $1.79, and the current candle has finally broken it. Cake price has shattered the yearly lows, and the bears might drive the price below the $1 mark.
There are no signs of bullishness in the market till the price forms support. There is the possibility that $1.50 might hold the price, but the primary concern is the strong bearish momentum.
PancakeSwap Increased Trading Fees, Revenue Remains Low
PancakeSwap recently burned 8,554,482 cakes worth over $16 Million. A massive burn rate has caused a surge in trading fees, up approximately 190%. The increase in trading fees was due to the inclusion of the V3 fee and market maker fee in April. Even though the trading fees increased, the revenue remained unaffected.
The number of daily transactions and users declined sharply over the past few days. PancakeSwap position on the top 10 cryptocurrencies by market cap has also declined in the past few days.
The number of daily active addresses has also taken a hit, indicating less usage. Negative sentiments are currently dominant in the market. PancakeSwap price prediction suggests a decline till the market gets stable.
Will Bulls Step in to Interrupt the Bearish Rally?
Cake price is trading below all the major EMAs – 20,50,100 and 200-day indicating strong bearish momentum. Chaikin Money Flow score is -0.39 indicating a substantial weakness in the market.
The relative strength index (RSI) has been inhabiting the oversold zone since April 23. RSI currently trades at 16.72 with no signs of reversal or pullback in the price. The price touched the lower band and did a short-term pullback but could not rise above 20-day.
The cryptocurrency price is again headed toward the lower band of Bollinger which resides near the $1.60 level.
Conclusion
The market structure and price action is highly bearish for PancakeSwap. PancakeSwap price prediction suggests a further decline till the price forms strong support. There is the possibility that the bulls might jump in the market at the $1.60 and $1.50 level to protect the price from further falling. The stability of the coin has also worsened amidst the increase in trading fees. PancakeSwap inflation rate has dropped from over 20% to 4%. The price plunged after the proposed changes to staking rewards.
Technical Levels
Major support: $1.60 and $1.50
Major resistance: $1.79 and $1.88
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
