CAKEUSDT (PancakeSwap) - Coin of the Week
PancakeSwap is an automated market maker (AMM) — a decentralized finance (DeFi) application that allows users to exchange tokens, providing liquidity via farming and earning fees in return. It launched in September 2020 and is a decentralized exchange for swapping BEP20 tokens on Binance Smart Chain. PancakeSwap uses an automated market maker model where users trade against a liquidity pool. These pools are filled by users who deposit their funds into the pool and receive liquidity provider (LP) tokens in return.
Technically, PancakeSwap is in a big consolidation on the daily timeframe that started at the end of August this year. When we look at the 4h chart we see that the price is consolidating below the blue trendline marked on the chart. We have 2 working scenarios for this cryptocurrency right now, the first would be a break of the blue trendline and a continuation to the upside and second a retest of the support area and then a reversal to the upside. Although a total downside with a retest of the lows of May is possible, the probability for this scenario is low.
Trade with care.
Best regards,
Financial Flagship
Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move.
Technically, PancakeSwap is in a big consolidation on the daily timeframe that started at the end of August this year. When we look at the 4h chart we see that the price is consolidating below the blue trendline marked on the chart. We have 2 working scenarios for this cryptocurrency right now, the first would be a break of the blue trendline and a continuation to the upside and second a retest of the support area and then a reversal to the upside. Although a total downside with a retest of the lows of May is possible, the probability for this scenario is low.
Trade with care.
Best regards,
Financial Flagship
Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move.
