So, you have been hoping to see some tasty features after scooping up some CAKE at its latest lows. Now you’re questioning whether or not you made the correct alternative after it didn’t prepare dinner up noteworthy features.
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 top of Could. 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 may be asking themselves is whether or not it’s nonetheless definitely worth the funding. The value motion has been very bearish since Could 2021 and Pancakeswap DEX has been dealing with heavy competitors. Newer and improved DEXs are actually consuming into its market share and this may have an effect on long-term CAKE demand.
To make issues worse, its social dominance and social volumes have taken a success since mid-April.
Supply: Santiment
One might argue that CAKE’s bearish efficiency is basically as a consequence 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 large value drop.
In keeping with the Nomics crypto-index, PancakeSwap V2’s whole buying and selling quantity dropped considerably within the final 4 weeks. It peaked at $1.04B throughout Could’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 Could, regardless of the buildup and upside in its MFI and RSI indicators.
Supply: TradingView
In CAKE’s protection, lots of the high cryptocurrencies solely registered a small value transfer and are nonetheless with the slim 2-week vary. The newest value pump in the direction of the top of Could 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 high DEXs by volumes and was one of many pioneers within the phase. Maybe, these elements could contribute to extra utility over time. The top-of-Could 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 most recent crash. Such an final result would doubtless breathe extra life into CAKE, permitting it to get well to larger value ranges.
