There are many DeFi protocols in the crypto world, but PancakeSwap is famous because it is a food-themed DeFi protocol that aims to Automated Market Making (AMM) as a liquidity provider. AMM is a decentralized exchange protocol that uses mathematical formulas to set asset prices.
This open-source project is based on Binance Smart Chain (BSC) that swaps BEP-20 tokens. It enables the user to yield, stake, and farm the CAKE token on the network. The food-themed DeFi protocol is popular for the following reasons:-
- Swapping: An open-source DeFi protocol allows the swapping of BEP-20 tokens.
- Farming: It allows to farm, native token CAKE, and users can lock these as the liquidity provider tokens and get CAKE as rewards.
- SYRUP Pool: It allows the users to earn more by staking the native CAKE token in SYRUP pools.
- Lottery: It also offers lottery tickets that cost around 10 CAKE. It gives the users random four-digit numbers as a code, and if it matches, then the user wins the jackpot lottery.
- IFOs: With these Initial Farm Offerings, anyone can get a newly launched token after committing LP tokens from a pool.
- Teams and Profiles: Users can create teams and profiles. Any users can join any team and compete for team achievements.
Indeed, PancakeSwap has gained popularity these days for its unique features and stunning facilities. If you are interested in investing in the PancakeSwap network, click here to read our CAKE coin price prediction.
At the time of writing, CAKE was trading around $4.88. It has been in an uptrend since June, but now PancakeSwap is trading around the resistance level. That means if it breaks the resistance, it will continue the momentum until the level of $5.5.
However, if CAKE does not break the resistance this time, then it will retest the level of $4.42, which can be considered as a support for the short term. Based on the technical indicators, candlesticks are forming in the upper half of the Bollinger Bands, with bullish MACD and RSI suggesting CAKE price may break the resistance and continue the uptrend.
On the weekly chart, PancakeSwap has been in an uptrend, but it has taken recent support around $2.47, but now it is trading around the resistance level. If it breaks the resistance of $5.07 on the weekly chart, it will face another resistance around the previous support level of around $5.7.
The Bollinger Bands lack volatility, and candlesticks are forming on the upper half, so it may suggest a consolidation for the next few weeks. However, you may add CAKE to the watch list and take a medium-term position when it breaks the resistance decisively.