Competition in crypto and DeFi is intense. Part of this is that most protocols offer nearly the same value proposition.
The same services offered in Ethereum are also available in the Binance Smart Chain (BSC).
Users want to make money fast and cheaply.
That’s why, despite the Ethereum brand, most are now flocking to BSC.
In BSC, the PancakeSwap is the go-to swapping dApp. It resembles Uniswap, the only exception being the absence of the horror called Gas.
PancakeSwap is nearly free to use and depends on the underlying scalable blockchain for security.
BSC is by Binance and explains why BNB is central.
PancakeSwap (CAKE) Roared 5X in Three Months
In recent weeks, CAKE, like all DeFi tokens, have been grinding higher, even outperforming UNI, ETH, and BTC in the same period.
For instance, since February, the token has nearly 5X, rising from $9 to around $43, registered in May 2021.
What’s more? Traders note that CAKE is highly liquid and boasts of decent network activity. This stems from the migration from Uniswap and the deployment from PancakeSwap to escape the high Gas fees.
This has injected momentum in CAKE prices, indirectly propping BNB prices that have been sapping momentum from this welcomed migration.
Accordingly, CAKE traders expect a buy trend continuation above $45 in the coming weeks.
CAKE/USDT May Reach Tear above $50 to $60
Presently, the CAKE/USDT price is trending lower. Still, one trader, CryptoPatel on Trading View, thinks it will break out above the main resistance trend line and rally to $61.
From the 1HR chart, it is clear that despite the market confidence, CAKE prices are under pressure, printing lower, reflecting the general state of DeFi.
Nonetheless, a comprehensive close above $30 could see CAKE race to $61, a near 2X in ROI for aggressive traders.
ZenkoLab, on Trading View, also says CAKE can nearly double from spot rates.
The trader observes that the CAKE/USDT price is trending inside an ascending channel in the daily chart.
If CAKE/USDT finds support at spot rates, bouncing back within the confines of the channel, CAKE prices could surge to $51 in the medium term.
Therefore, he reckons that at spot levels—especially if CAKE bounces from the support trend line like it has done before—opportunistic traders have an opportunity to buy the dips.
$51 is a target that’s near LaiChee81‘s projections. The technical trader notes that CAKE/USDT is trending lower but inside a bull flag.
Therefore, if CAKE prices find support inside the descending channel with comparatively low trading volumes, the token will likely find momentum, break above the bull flag, and race to $54.
PancakeSwap (CAKE) Will Crush Bitcoin
CAKE might be hammered against the USD, but CryptoPatel assesses that the token is ready to trounce BTC.
From the 6 HR chart of the CAKE/BTC chart, the path of least resistance versus digital gold is northwards, he reckons.
As of writing on May 18, CAKE is trading at 6,300 Sats on the 6 HR chart. Notably, the token has broken above a key resistance trend line (a bull flag).
From his CAKE/BTC technical analysis, the token could rise to 7,900 Sats or April 2021 highs to confirm remarkable gains of Q1 2021.
A close above 7,900 Sats opens up CAKE to 9,800 Sats, a new 2021 highs in the medium-term.
Disclaimer: Opinions expressed are not investment advice. Do your research.
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