JAN 9, 2024
(Alpha) Weekly Altcoin Review: PancakeSwap ($CAKE)
by Crypto Alpha, BXVb7rtP5dwgpuKWx3S1B78sdwibsPstuowsyzjpU1jE
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Want to eat your CAKE and have it back?
In recent years, Decentralized Finance (DeFi) has changed the narrative of finance in the crypto ecosystem, disrupting traditional finance norms that have extended its arms to the crypto body. The DeFi system has enjoyed robust growth and adoption, creating an atmosphere for projects like Pancakeswap to thrive on the innovation of blockchain technology. PancakeSwap is one of the projects pioneered on the Binance Smart Chain (BSC) blockchain network for over 3years now. This project has provided a solid use case which made it rally to an ATH of $44 during the bullrun of 2021. The bear market dumped the price of this token to an ATL of $1.050. With developers in the kitchen, cooking up and spicing the project with new developments in recent days, has caused this project to be on the move, with the current price of $3, after coming from a retracement of $4, this project may be gathering interest/momentum for a 5X ROI.
What is PancakeSwap ($CAKE)?
PancakeSwap is a Decentralized Exchange (DEX) and automated market maker (AMM) that allows users to buy and sell different types of digital currencies that run on Multichains like BNB Chain, Ethereum, Aptos, Polygon zkEVM, zkSync Era, Arbitrum, Linea, Base, and opBNB. Pancakeswap became the largest DEX built first on the Binance Smart Chain ecosystem. This project allows users to trade virtual currencies without having to go through a centralized crypto exchange like (Binance, Kucoin, and Coinbase among others).
Also, users can do other activities on the platform aside from buying and selling currencies, for instance, users can provide liquidity by staking or yield farming to earn rewards which come in the form of $CAKE or other tokens as the case may be. With the introduction of NFT Marketplace, Gaming Marketplace, and Token Launchpad (IFO), this DEX has become a robust platform to keep users engaged to generate enough fees that can be used to buy back their native token and burn or save for further development.
CAKE is a BEP20 token that was created by the PancakeSwap project to offer users an incentive for providing liquidity. Every single time that there is a transaction on the platform, there is liquidity that is being taken from one of these pools. People who provide liquidity will then be rewarded with $CAKE for each of the transactions that are processed in this AMM and DEX.
Why do we want to get some $CAKE from the oven?
The developers of the project just made some announcements about some latest developments that are currently being executed, which are poised to drive the interest of market participants, as well as liquidity providers. “PancakeSwap has substantially enhanced its tokenomics, emissions, and overall growth strategy. From the introduction of $CAKE Tokenomics v2.5 to the recent launch of the veCAKE Gauges System, these initiatives have collectively laid the foundation for sustained growth across all our deployments. After achieving consistent deflation in recent months, their latest strategic move is to reduce the $CAKE token's total supply to a maximum cap of 450 million $CAKE, aligning with their vision for a robust, deflationary model. For more details about this fundamental”. (https://blog.pancakeswap.finance/articles/pancake-swap-reduces-cake-maximum-supply-to-450-million-charting-a-course-for-deflationary-success)
Let’s get into the Charts!
DISSECTING $CAKE WITH CHART; We will look at good support levels to cut our share of $CAKE...
CAKE DAILY CHART
The price of $CAKE is currently trading at $2.874 (as of the time of this writing), this is after pulling back from a new high of $4. The presence of the Bulls can be seen in the chart perhaps due to the latest developments and announcements from the project. The daily timeframe paints a bull flag pattern, and our first entry will be at the order block that sits at $2.70 for a continuation to the upside. Price may come to draw on the liquidities that sit beneath the order block. The second entry will be at $2 and our last entry will be at the support at $1.80.
We intend to DCA our entries in other to give room for market volatility, as this will be a long-term hodl position. Likewise for profit taking, we will consider taking our first profit when the market completes this pattern towards the first resistance at $4.73 and subsequently at the $6 benchmark. We can continue to hold for more profits if the market presents us with such.
CAKE WEEKLY CHART
The weekly timeframe filters the noise out of the chart leaving us with just two distinctive and significant levels which are at $2 and $1.80 respectively. If the price comes to this level, it means we buy 50% of our investment at the first level and another 50% at the second level. It may take several weeks for the price to move towards our take profit level but as aforementioned, this will be a long-term hodl.
Happy New Year, everyone!
Welcome to a year filled with endless possibilities. Stay tuned for the upcoming release of our Crypto Alpha Report (CAR) Three edition, delivered straight to your wallet as exclusive NFTs. Get ready for an exciting journey ahead!
Remember to trade in your own best interest, only commit what you can afford to lose. May the market go with us!
We may make a review of this publication as the market evolves...
If you need a further breakdown, inquiry, or analysis on any particular coin, feel free to email us (email@example.com).
See you again soon. May the markets go with us!
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