Altcoin
PancakeSwap traders will have to wait a little longer for a rally- Here’s why
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- CAKE’s revenue increased considerably over the last 90 days.
- P/S Ratio indicated CAKE was undervalued; metrics and market indicators were bearish.
Token Terminal’s data revealed that PancakeSwap’s [CAKE] revenue increased considerably over the last 90 days.
This update complemented PancakeSwap’s recent achievement of being the most used dApp on the BNB Chain, with over 1.36 million users in 2023 alone.
Source: Token Terminal
Surprisingly, as CAKE’s revenue and the count of users increased, the token’s P/S ratio registered a slight decline.
Well, the ratio is used to determine whether an asset is undervalued or overvalued. Therefore, a decline in this metric suggested that CAKE was undervalued.
Realistic or not, here’s CAKE’s market cap in BTC terms
CAKE’s trajectory
CAKE’s recent price action has been pretty sluggish, thanks to the current bearish market trend, which has restricted most of the cryptos from registering gains.
As per CoinMarketCap, CAKE’s price declined by more than 4% in the last seven days, and at the time of writing, it was trading at $4.01 with a market capitalization of over $765 million.
Though CAKE’s revenue increased, its performance on the metric front was not up to the mark. For instance, Santiment’s data pointed out that despite topping the list of the most used dApps on the BNB Chain, CAKE’s daily active users went down over the last week.
Whales’ interest in CAKE also seemed to have dwindled. In fact, the whales’ transaction count registered a decline. Moreover, Dune’s data pointed out that CAKE’s total number of transactions did not increase much over the past few months.
Source: Santiment
Nonetheless, a few of the metrics were working in CAKE’s favor. Consider this- Positive sentiments around CAKE spiked last week, reflecting investors’ confidence in the token.
As per LunarCrush, bearish sentiment declined by 24% over the past week, while CAKE’s Altrank improved, both of which were bullish signals.
How much are 1,10,100 CAKEs worth today?
Slow-moving days ahead
Checking CAKE’s daily chart, it was evident that sellers were still ahead in the market. The Relative Strength Index (RSI) was resting below the neutral zone.
The coin’s MACD revealed a bearish edge. Additionally, the Bollinger Bands (BB) suggested that CAKE’s price was in a less volatile zone. Therefore, the chances of a sudden northward breakout were less.
However, the Money Flow Index (MFI) was approaching the oversold zone, which might increase buying pressure in the days to come. Lastly, CAKE’s Chaikin Money Flow (CMF) looked bullish as it registered an uptick from the neutral mark.
Source: TradingView
