PancakeSwap Price Prediction – Will CAKE Price Hit $100 in 2021?

This PancakeSwap price prediction article is based on technical analysis. Within this article, you will see the factors and metrics that we put into consideration while writing this CAKE price analysis and prediction. 

Many cryptocurrencies rose and fell in a rollercoaster ride as market volatility continues to plague the world of crypto. There were many tokens seen in various news reaching new all-time highs, and recently all-time lows as well. Because of this, many traders are confused, unsure of what to do, panic-selling, and losing money during the most recent crypto crash. 

Of course, CAKE traders are not safe from the onslaught. In May, CAKE reached a new all-time high of $44.18. In the same month, CAKE dipped as low as $9.52 according to coin information websites like CoinMarketCap and CoinGecko. Will this CAKE continue to be bearish or will it recover and reach a new all-time high? These are the questions that we’ll address in this CAKE price analysis 2021 article.

What is PancakeSwap (CAKE)? 

As appetizing as it sounds, PancakeSwap or CAKE doesn’t have anything to do with food. It’s an automated market maker and a decentralized finance (DeFi) application. The platform is a Binance Smart Chain-based Decentralized Exchange (DEX) launched by anonymous devs — that seem to like breakfast food and rabbits. It’s often compared to Ethereum’s Uniswap and SushiSwap because of its many similarities, but it also has many additional features that allow users to earn rewards.

What is an automated market maker (AMM)? If you haven’t encountered this term yet, here’s what it means. An AMM is different from traditional centralized exchanges. You can trade digital assets on this platform. However, there is no order book where you are matched with fellow traders. In an AMM, you are trading against a liquidity pool which is simply a bunch of funds thrown together in a large digital pile. It’s an essential element of Decentralized Finance (DeFi) protocols. 

The liquidity pool is combined using other users’ funds. These users deposit them in the liquidity pool and they receive Liquidity Provider (LP) tokens in return. These tokens can be used to claim their share and a part of the trading fees. 

CAKE is the native token of the PancakeSwap platform. It’s the BEP-20 Pancake token (CAKE). This token is one of many tokens that are used within the PancakeSwap protocol and is made available for token swaps within the exchange. 

PancakeSwap Price Analysis 2021

Without any further ado, let’s take a look at the charts for this CAKE Price Analysis 2021 article. The first indicator that we will be analyzing in this article is called the 200-Day Simple Moving Average (SMA). This is an indicator that gives us a general analysis of whether the market is bullish or bearish. 

As we can see in the chart below, there were several dips that brought CAKE below the 200-Day SMA. These small dips may be classified as bearish trends within a wider bull market. This is because the majority of the range candles are above the 200-Day SMA line. This means that the market as a whole is bullish.  

Another indicator that can show if it’s bullish or bearish is the Relative Strength Index (RSI). It’s a very popular momentum indicator that shows if the market is bullish or bearish. It also shows generally good buying and selling opportunities. Let’s take a look at the chart to see if CAKE is oversold or overbought.

The line is hovering at almost the middle, meaning that the token is neither oversold nor overbought. However, as we can see in the chart above, the RSI is showing a bullish trajectory in coherence with the 200-day SMA. It may still be a good time to buy. But as always, it can go both ways. It can either push forward to the overbought level or go with a downward pressure to the oversold level.

PancakeSwap Price Prediction 2021

The last technical indicator that we will use to determine the price trajectory for this CAKE Price Prediction 2021 article is the Ichimoku Cloud. This indicator is a collection of various indicators namely the Lagging Span, Base Line, Conversion Line, Lead 1, and Lead 2. These indicators show support and resistance levels. Aside from these, it also shows momentum and trend direction by taking averages and plotting them on the chart.

There are several findings that we can see in the CAKE Ichimoku Cloud chart. First of all, the Lagging Span (white line) also known as the Chikou Span shows two signals. Since the lines are generally above, this indicates a bullish trend. However, if we zoom in, we can see a clear downward convergence by the Lagging Span and the Conversion Line (blue line) and Base Line (yellow line). This indicates a bearish trend. 

If the Lagging Span crosses downward with any line, it indicates a bearish trend. In the chart above, we can clearly see that the Lagging Span crossed down through the Conversion Line and Base Line. This indicates a strong bearish sentiment. However, we can also see that it quickly found support and rebounded back to an upward trend. 

In a bullish market, the Conversion Line will be the second-highest line. As we can see in the chart above, this is true for CAKE’s price movement. 

Aside from the generally bullish sentiments, let’s talk about price levels. The Ichimoku Could, as seen above, shows an area of resistance and support. In the chart, support and resistance levels can be seen clearly. If CAKE makes a bullish recovery, support will be around $28, while resistance will be around $33. If a downtrend continues, support will be around $22.5, while resistance will be around $27. 

Now, is it possible for CAKE to go 1 USD in 2021? Yes, anything is possible. If we are looking only at a short-term bearish trend within a wider bull market, CAKE can reach a new all-time high of around $100 dollars at the end of 2021. However, if it continues to go bearish, we may see a price drop to the $10 to $5 range. 

You must always remember that this CAKE Price Prediction 2021 article is only here to help you with your purchase decision and must not be treated as financial advice. No one knows for sure how the market will perform. So, please buy at your own risk!

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Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.

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