Despite Network Advancements, CAKE Doesn’t Look Appetizing to Investors

PancakeSwap recently teamed up with Hashflow to offer HFT payments on their staking platform. The tweet implied that this would allow someone to take advantage of PancakeSwap to “farm” his HFT tokens for profit.

Any decision that PancakeSwap users vote on must be backed by a 60% vote of HFT token holders, as is customary in the DeFi community.

Let’s take a quick look at recent CAKE performance.

• Overall, DEX is making great progress
• Compared to that risk, CAKE’s volatile prices and low returns are unattractive.
• In the event of a bearish breach, the price can sink below $3.575.

PancakeSwap’s positive developments don’t end there. DEX made headlines in his October when he proposed to the community to switch from the BNB chain to the Aptos mainnet. An overwhelming majority of local residents responded favorably to the plan.

By contrast, PancakeSwap’s native coin, CAKE, is struggling. As far as we can tell, CAKE is on the upside, but monthly pessimistic comments overshadow the positivity.

Not appealing enough to potential investors?

CAKE may be an attractive asset, but it’s currently underperforming. After the price plummeted due to the demise of FTX, the price is currently only moving sideways.

Since then, the token has recovered, with recent support at $3.943. Its price ranges from $4.433 to $3.575 per share.

Chart - TradingView

As a token, the Messari indicator doesn’t look particularly attractive either. Sharpe’s ratio is -1.96, indicating a mismatch between asset-specific risk and return on investment. Asset volatility is also at its highest level since June.

Technical indicators are a mixed brew of neutral and bullish indicators. At an R value of 0.22, the regression analysis indicates that the sideways trend continues.

The RSI is trending upwards, which could indicate a price increase in the near future.

Will the cake be delicious again?

The unexpected stability of the Bollinger Bands increases sideways price action.

Moving averages pose a problem because most moving averages, including the EMA ribbon, show strong sell signals.

The $3.93 support is definitely solid. This is because the wick at the bottom of the red candle is currently longer as a sign of strength. However, the rising triangle formation will provide some support for the bears.

If the bears gain momentum and break out of $3.93, investors and traders can find solace at $3.847 and a fall to $3.575 is possible.

CAKE total market cap at $636 million on the daily chart | Featured image from Taste, Chart: TradingView.com