PancakeSwap Price Prediction: CAKE Eyes $2 – What's the Cause of the Optimism?

PancakeSwap Price Prediction: CAKE Eyes $2 – What’s the Cause of the Optimism?

Updated: 25 August 2023

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A 2.1% decline for CAKE has been seen in the last 24 hours. The token is also down 13.7% in the past two weeks, but the community is optimistic after PancakeSwap’s launch on Linea.

CAKE is reacting to the downtrend seen across the broader cryptocurrency market. The total crypto market capitalization is down 1.4% in the last 24 hours.

Bitcoin is down by nearly 2%, and the rest of the cryptocurrency market is following the trend and dropping.

Earlier this month, CAKE was trading at low volatility before a major plunge was seen on August 18 as the price dropped to $1.31.

Another significant drop was on August 23, as the price dropped further to $1.23, a new monthly low. Buyers are attempting to buy the dip, hence the slight gains to $1.29. However, breaking past $1.30 has been futile.

CAKE is currently trading at three-month lows. The market cap dropped from around $340 million on August 1 to $269 million.

CAKE Succumbs To Selling Pressure

The sellers control CAKE’s price action, and more dips are likely in the short term.

The Relative Strength Index at 28 shows the token is oversold, and sellers might be exhausted. However, the downward movement of the RSI line shows that more selling pressure could engulf the market.

The former support level of $1.33 is now a crucial resistance. CAKE’s uptrend has been rejected severally at this level, indicating weak buying momentum.

The other crucial resistance levels that CAKE needs to break to confirm an uptrend are seen in the Simple Moving Averages (SMAs).

CAKE must break past the 50-day SMA of $1.46 to overcome the bearish pressure. Buyers might return to the market and trigger a rally if it breaks past this level.

Breaking past the 100-day SMA of $1.51 might confirm a trend reversal where bulls become in control and $2 might be achieved.

PancakeSwap Launches On Linea Mainnet

CAKE is dropping despite a significant development in the PancakeSwap ecosystem. PancakeSwap has officially launched on the Linea Mainnet.

🌟 We've arrived on Linea mainnet! We're thrilled to share this moment with you all. Start accumulating points and unlock exclusive NFTs by completing tasks. Don't miss out on any details – follow our straightforward guide! 🚀

Here's how to get started:
🔗 Connect your wallet… pic.twitter.com/oRW6lEJ03b

— PancakeSwap v4🥞 (@PancakeSwap) August 24, 2023

The partnership between the top decentralized finance (DeFi) platform and Linea seeks to offer a seamless trading experience. The offering also comes with low fees, better returns for liquidity providers, and improved capital efficiency.

Linea is a Layer 2 scaling solution previously known as ConsenSys zkEVM. The layer-2 network claims to offer better security through zero-knowledge proofs and benefits similar to an Ethereum Virtual Machine (EVM).

The launch of PancakeSwap v3 on Linea offers Swap and Liquidity Provision features. The offerings allow users to trade different tokens and participate in liquidity provision through this platform.

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The yPredict presale is selling out fast. It has already raised $3.5 million. YPRED token is trading at $0.1 during the presale.

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