PancakeSwap is a decentralized exchange (DeFi) where users can trade cryptocurrencies, earn rewards through staking and farming, participate in lotteries, and influence governance choices. It runs on the Binance Smart Chain, with an emphasis on reduced transaction costs and fast processing. CAKE is its native coin.
CAKE is up 48.54% over the past month. However, it is still 89.42% below the ATH achieved in April 2021. This suggests that CAKE still has plenty of room to grow.
The 4-hour chart of CAKE shows a bullish trend. The short-term EMAs (20 and 50) are above the long-term EMAs (100 and 200). This signals upward momentum. CAKE price is trading near the $5.03 resistance. Breaking it may extend the upward trend. This is because of the bullish EMA pattern - they can provide support if the price drops.
CAKE is targeting the May 2022 high of $7.71. To get there, it needs to maintain an uptrend and validate support. If it breaks above $5.03, this level could become new support. Still, investors should be careful. The path to $7.71 has some resistance to overcome. Each of them can test the strength of an uptrend.
