PancakeSwap prediction as price overcomes slump and posts gains

• PancakeSwap narrowed its losses over the past week to 2.45%.

• Decentralized exchange protocol is supported by Binance

• CAKE faces resistance at $4.12, but a breakout is possible if the momentum remains strong

PancakeSwap CAKE/USD is a cryptocurrency to watch as the price begins to shrug off recent losses. Over the past week, the cryptocurrency lost just 2.45% as of Wednesday. The slight loss was after a recovery over the past three days. The token is trading at $3.92 after he touched a low of $3.6 on August 20th. Tokens are stalling, but still high.

PancakeSwap is making progress in the DeFi sector despite ranking lower than its peers. The decentralized exchange is powered by Binance, the largest cryptocurrency exchange. Binance Labs has also invested in his PancakeSwap, further demonstrating the trust the company has earned. However, its native token is constrained and its price is largely driven by market momentum.

CAKE approaches resistance as price overcomes recent decline

Source TradingView

On the daily chart, CAKE is bullish below the resistance at $4.12. The token continues the upward trend that started in mid-June. The momentum indicator shows that the token’s latest bearish momentum is weakening.

CAKE will soon reach the resistance as the bullish strength is maintained. If sentiment improves and CAKE continues to attract buyers, a breakout is likely. Still, the low valuation makes CAKE attractive to long-term buyers.

If CAKE breaks out of $4.12, the next attention level is $4.8. Also, with CAKE following the market, it is necessary to monitor general cryptocurrency sentiment.

Overview

CAKE is recovering from its recent downturn. Tokens are eyeing the resistance at $4.12 as the next level. Resistance breakouts depend on cryptocurrency sentiment.