PancakeSwap token has gained 21% in a week
The platform is a decentralized exchange on BNB Chain
CAKE, the native token, is claiming higher levels, and investors should take positions
PancakeSwap CAKE/USD may not rank among the top cryptocurrencies. However, it makes the right headlines, good enough to be noticed by crypto enthusiasts. The cryptocurrency’s surge of 21% in a week makes it worthy of attention.
Ranked 78th by market cap, PancakeSwap may be an underdog in the DeFi sector. However, it is backed by the world’s leading exchange Binance. PancakeSwap is itself a decentralized exchange to the BNB Chain. It allows users to swap coins without intermediaries.
In early June, Binance Labs announced it had invested in PancakeSwap. That boosted the price of the native token CAKE. However, the price turned lower again on the back of a strong bear sentiment in crypto. With its smart contract functionality and Binance connection, PancakeSwap remains a viable protocol. Investors should develop an interest in CAKE as the price shows bullish signs.
CAKE trades slightly above a key resistance
Source – TradingView
On the daily chart, CAKE trades slightly above a resistance zone at $3.5. The breakout is underway, and investors should watch for price action. The MACD indicators are already in the bull territory. If the cryptocurrency successfully clears $3.5, CAKE will have another litmus test at $4.0.
Our verdict is that CAKE is developing a bullish momentum. It is just a matter of when the token will clear the resistance at $3.5 and $4.0. Investors can buy now to lock value and hold in the long-term.
PancakeSwap is gaining and looks likely to break past $3.5. After that, the next resistance is at $4.0. The cryptocurrency is good for buying and holding in the long term.