CAKE Not Looking Tasty For Investors Despite Network Progress
2 min read
As of late, PancakeSwap has been working with Hashflow to offer HFT payouts on its staking platform. The Tweet implies that this will make it possible for someone to utilize PancakeSwap to “farm” HFT tokens for profit.
For a decision to be voted on by PancakeSwap users, it must be supported by the votes of 60% of HFT token holders, as is customary in the DeFi community.
Let’s take a quick glance of how CAKE has been performing of late:
- Overall, the DEX is making great strides
- When compared to its risk, CAKE’s volatile price and low return make it unappealing
- If a bearish breach occurs, the price might fall below $3.575
The positive developments for PancakeSwap don’t end here. The DEX made headlines in October when it offered to its community that it switch from the BNB chain to the Aptos mainnet. The overwhelming majority of locals responded favorably to this plan.
In contrast, CAKE, PancakeSwap’s native coin, is struggling. From what we can tell, CAKE is on the upward, but a monthly pessimistic comment casts a shadow over the positive picture.
Not Appealing Enough To Potential Financiers?
CAKE may be a sweet-sounding asset, but it is currently performing poorly. After dropping precipitously due to FTX’s demise, the price is now only fluctuating sideways.
The token has recovered since then, with recent support being located at $3.943. Its price fluctuates between $4.433 and $3.575 per share.
Chart - TradingView
As a token, Messari metrics likewise do not look particularly attractive. Sharpe’s ratio is -1.96, indicating a discrepancy between the asset’s inherent risk and return on investment. The asset’s volatility is also at its highest level since June.
The technicals are a mixed brew of neutral and bullish indicators. With an R-value of 0.22, regression analysis indicates that the sideways trend will continue.
The RSI is on the rise, which may be indicative of a near-term price increase.
Can CAKE Once Again Be Tasty?
The unexpected stability of the Bollinger band increases the sideways price movement.
As most moving averages, including the EMA ribbon, are displaying strong sell signals, the moving averages pose an issue.
The support at $3.93 is unquestionably robust, as the red candle currently has a longer bottom wick as a sign of strength. However, the rising triangular formation will provide some support for bears.
If the bears gain traction and break through $3.93, investors and traders can take consolation at $3.847, and a drop to $3.575 is possible.
CAKE total market cap at $636 million on the daily chart | Featured image from Taste, Chart: TradingView.com
