This Week’s Crypto Trade is PancakeSwap (CAKE) which has a market cap of $538.2 million and is ranked #75 on Coinmarketcap. PancakeSwap is an automated market maker (AMM) – a decentralized financial (DeFi) application.
This application allows users to exchange tokens, provide liquidity through Yield pharming and earn fees in return. It is thus a decentralized exchange or DEX.
The price of PancakeSwap reached a high of $44 in April last year, after which it crashed in line with the overall crypto market. Except for a brief rebound in August of last year, the price then continued to fall, reaching a provisional low of $2.49 in June.
The price has been recovering a bit lately but there is no real strength yet. However, we do see that the volume recently picked up, which is a positive sign. This indicates great interest among crypto investors.
As long as CAKE manages to stay above $2.49 and break through the $4 resistance on the upside, then we can look upwards again.
Nevertheless, at the current price I think PancakeSwap is a bargain anyway and with a stop-loss below $2.49 I want to bet on a rally towards $5 for the short term and $10 for the long term.
PS) For our crypto portfolios, we have now included this coin in our portfolio.