CAKE Not Looking Delectable For Investors Despite PancakeSwap’s Progress

Christian Encila

2 years ago

3 mins read

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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

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.