- PancakeSwap v3’s number of transactions on Ethereum spiked on 1 May 2023.
- CAKE’s RSI and stochastic were oversold, but a few indicators were bullish.
PancakeSwap [CAKE] recently completed one month of its much-hyped v3 launch. At this juncture, PancakeSwap posted a tweet on 2 May, highlighting v3’s achievements over the past month.
?? V3 is on a roll! Trading volume has reached $3.29B and TVL is now $239M!
? #PancakeSwapv3 on Ethereum is now among the top 10 DEXs in volume ?!
? We're thrilled to see our platform continuing to grow, and we couldn't have done it without our amazing community ? pic.twitter.com/AC0SW8XI4x
— PancakeSwap?Ev3ryone's Favourite D3X (@PancakeSwap) May 2, 2023
Read PancakeSwap’s [CAKE] Price Prediction 2023-24
A promising one-month journey?
Reportedly, the v3 has become one of the top 10 DEXs in volume on the Ethereum blockchain. This was commendable, as v3 achieved this feat within a month of its launch.
Moreover, v3’s trading volume reached $3.29 billion while its TVL touched $239 million, with the majority of the value coming from the BNB Chain.
Dune’s data revealed that PancakeSwap v3 performance was encouraging throughout the past month, with growth on a few fronts in recent days.
The number of transactions on Ethereum spiked substantially on 1 May. The spike was also accompanied by an increase in the number of users.
Source: Dune
Well, the count of transactions and the number of users also registered an increase on the BNB Chain, which was an optimistic development.
Furthermore, the volume on BNB Chain remained pretty consistent over the past few weeks. However, volume on Ethereum seemed to have declined slightly.
How was CAKE’s reaction?
Surprisingly, CAKE’s response to the v3 launch was nothing less than a disaster, as its price plummeted substantially over the past month.
Negative sentiments around the token dominated the market, as evident from the reading of its weighted sentiment metric.
During the price decline, CAKE’s 1-week price volatility went up, but it remained low for the other days. CAKE’s MVRV Ratio was also considerably low.
Source: Santiment
But there’s was good news
Nonetheless, at press time, CAKE showed signs of recovery as its daily chart went green. According to CoinMarketCap, CAKE’s price increased by more than 2% in the last 24 hours. At the time of writing, it was trading at $2.56 with a market capitalization of over $499 million.
CryptoQuant’s data revealed a reason that might have played a role in changing the trend. As per the analytics site, PancakeSwap’s Relative Strength Index (RSI) and stochastic were both oversold, which could have initiated a trend reversal.
Source: CryptoQuant
Realistic or not, here’s CAKE market cap in BTC terms
Are bulls stepping up their game?
The same possibility of a trend reversal was also visible on PancakeSwap’s daily chart. Consider this- CAKE’s MACD displayed the chances of a bullish crossover in the coming days.
Just like the RSI indicator, CAKE’s Money Flow Index (MFI) was also in the oversold zone. Now, this can help increase buying pressure and, in turn, increase CAKE’s price.
However, the Exponential Moving Average (EMA) Ribbon still supported the bears, as the 50-day EMA was well above the 20-day EMA.
Source: TradingView
