- PancakeSwap price has been in a tight range in the past few days.
- It has formed an inverted head and shoulders pattern on the 4H chart.
The PancakeSwap price moved sideways on Monday as cryptocurrencies recoiled. CAKE was trading at $3.86, where it has been in the past few days. It has dropped by over 17% from the highest level this month. Its market cap has dropped to over $541 million.
PancakeSwap TVL slips
PancakeSwap is a leading blockchain project in the decentralized finance (DeFi) industry. It is a platform built on the BNB Smart Chain that helps people to trade, earn, and win cryptocurrencies. The platform has also moved to the non-fungible token (NFT) industry, where it helps people buy and sell NFTs on the BNB Smart Chain.
PancakeSwap is similar to Uniswap, which was the pioneer in the industry. It allows people to swap tokens, provide liquidity, and farm for returns. In addition, PancakeSwap runs a trading competition and lottery where people buy tickets and win prizes.
Like other DeFi protocols, PancakeSwap has had a difficult time in the past few months as activities in the network dropped. The total value locked (TVL) in the ecosystem has dropped from an all-time high of over $7 billion in March 2021 to the current $3 billion.
Learn more about how to buy PancakeSwap.
PancakeSwap price moved sideways in the past few days as investors worry about the Federal Reserve. On Friday, Jerome Powell, the Fed Chair said that the bank will continue hiking interest rates in the coming months and leave them higher for a while. Before the speech, most analysts were expecting the bank to start easing in the coming months.
PancakeSwap price prediction
The four-hour chart shows that the CAKE price dropped to a low of $2.50 in June this year. Since then, the coin started moving upwards as the DeFi and cryptocurrency industry stabilized. It rose to a high of $4.66 in August and then pulled back during the recent crypto sell-off.
The token is consolidating along the 25-day and 50-day moving averages and slightly above the 38.2% Fibonacci Retracement level. It has also formed what looks like an inverted head and shoulders pattern, which is usually a bullish sign.
Therefore, there is a likelihood that the PancakeSwap price will continue rising as bulls target the next key resistance level at $4.5. This view will be confirmed if it manages to move above the descending trendline that is shown in red.
