- PancakeSwap daily users increased significantly and broke into the top five.
- CAKE was overbought and selling pressure could increase.
With a Daily Active Users (DAU) of 127,790, PancakeSwap [CAKE] was able to climb to fourth per the metric, Token Terminal revealed. According to blockchain data analytics platforms, it took a 12.1% increase in 24 hours for CAKE to hit the milestone.
?@PancakeSwap climbing up the DAU ladder pic.twitter.com/tFPuryH3iD
— Token Terminal (@tokenterminal) January 30, 2023
Read PancakeSwap’s [CAKE] Price Prediction 2023-2024
The metric increase indicated a surge in address interaction and transactions. Also, CAKE was now only behind the Binance Coin [BNB], Polygon [MATIC], and Ethereum [ETH] in that regard.
Investors selling hot CAKEs?
Despite the upturn in usage, CAKE failed to register a price increase even though the automated market maker rose into the top five.
At press time, Binance Smart Chain token had lost 2.56% of its value in the last 24 hours. The performance in the last seven days was similar. However, in the past 30 days, CAKE increased by 26.53%, according to CoinMarketCap.
Hence, the recent decline could be linked to a slack in market momentum and profit-taking by CAKE investors. The Relative Strength Index (RSI) also displayed its agreement regarding a possible sell pressure.
Based on the daily chart, the RSI was 62.75. But between 24 – 29 January, the indicator was around the 70 overbought region. So, it might not be surprising that there was been a reversal, although not necessarily significant. Due to this, it is likely that CAKE eventually falls to a bearish momentum.
Source: TradingView
Regarding its volatility, the Bollinger Bands (BB) showed that it was not extreme nor did it obviously contract. However, the CAKE price continually hit the BB’s upper band as displayed above.
Since this was the case, it aligned with the RSI view of an overbought status. So, a price reversal lower than the aforementioned decline could be impending.
Time for a quick resolve
Meanwhile, PancakeSwap was looking to make changes to its emissions by streamlining activity. And the decision rests in the hands of its community. Voting started on 30 January and would end in 24 hours.
How much are 1,10,100 CAKEs worth today?
The proposal aimed to alternate the distribution process of staking, farming, and trading. But it would not completely change the total emissions. According to the proposal,
“The Staking allocation will primarily be used for the CAKE Pool while the Other allocation includes gamification, side products, and generic protocol.”
At the time of writing, 97.72% had voted in favor of the scheme. 2.28% of the voting populace did not consider the submission worthy of approval.
Additionally, Santiment revealed that the CAKE Market Value to Realized Value ratio (MVRV) was 2.3%. A few days back, it was as high as 5.91%. Still, there were signs of an upturn which could result in further selling pressure from investors.
Source: Santiment
