Pancakeswap (CAKE) price has seen a significant recovery in 2023. Since the start of the year, the price has gained 18%. Nevertheless, CAKE crypto price has still underperformed as compared to most of its peers. Our analysis shows that a slight breakout can unlock a huge upside for Pancakswap Finance’s native asset.
Cryptocurrencies are soaring on Tuesday as Bitcoin price has broken above $30,000 for the first time since June 2022. This has resulted in a strong rally in other cryptocurrencies as well. At press time, Pancakeswap (CAKE) price is trading at 3.76% after rising by 1.76%.
Pancakeswap is currently the biggest dex on Binance Smart Chain. The decentralized exchange was launched on BSC but later on, expanded its services on Ethereum and Aptos blockchains. According to DeFi Llama, there is currently $2.4 billion worth of liquidity on the exchange. Most of the TVL is locked on Binance Smart Chain, which amounts to $2.35 billion.
On April 3, Pancakswap V3 was launched on Ethereum and BSC. The latest version has four different fee tiers i.e., 0.01,0.05% and 0.25%, and 1%. Pancakeswap price has remained sideways despite the upgrade. The upgrade will enable every token to have liquidity pools for all four fee tiers. Other improvements in V3 include enhanced capital efficiency and lower fees than its competitors.
As evident from the following chart, CAKE crypto price has been consolidating below the 200-day moving average. Such consolidations usually occur before major moves. It is also clear that the price is forming a symmetrical wedge/triangle pattern. These patterns may result in an upward or downward breakout. An upward breakout might result in a 25% price pump.
Considering the downtrend on a higher timeframe, a downward breakdown is more likely. My Pancakeswap (CAKE) price prediction will remain bearish as long as it remains below the 200-day moving average, which currently lies at $3.97.
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