Santiment analyst Clementllk believed that the price of CAKE was approaching a good buying opportunity.
An assessment of the altcoin on a daily chart revealed growing accumulation.

On January 7 report by Santiment pseudonymous analyst Clementllk revealed in a review of PancakeSwap’s CAKE token that the altcoin hit a technical price pattern. This pattern has historically indicated a high success rate for buying opportunities.

How many CAKEs can you get for $1?

Clementllk assessed CAKE’s move on a price chart and found that the native token of the leading decentralized finance protocol (DeFi) on BNB Chain formed a shark pattern. According to Clementllk, the pattern will be successfully triggered if CAKE reaches the price of $3.45.

So it would create a good buying opportunity for investors.

Source: Sentiment

Furthermore, the analyst assessed CAKE’s market value to realized value (MVRV) ratio using two formulas, including the {(MVRV 90d / 30d)-1} and (MVRV 30d-MVRV180d). While the first formula returned a negative MVRV ratio, the latter returned a positive value.

Clementllk opined that this could be a “potential buying opportunity” for the investors looking to monkey the altcoin. At the time of writing, CAKEs (MVRV30d-MVRV180d) remained positive at 0.11, data from Sanitation revealed.

Source: Sentiment

What can CAKE holders expect?

CAKE kicked off the 2023 trading year with another bull cycle, a price move assessment on a daily chart revealed. A look at the position of the Moving Average Convergence Divergence (MACD) line relative to the signal line confirmed this.

On January 2, the MACD line crossed the signal line in an uptrend. This is generally considered a bullish sign, indicating that a new uptrend is starting. This was validated by CAKE’s price increase of 4% up to the time of going to press.

Since the start of the new bull cycle, CAKE has become less and less volatile. A look at the alto’s Bollinger Bands (BB) revealed this.

Read Pancake Swap [CAKE] Price Forecast 2023-24

The distance between an asset’s BB bands (upper and lower bands) can be used to measure market volatility. When the distance between the bands is large, it may indicate that the market is highly volatile. Conversely, when the distance between the bands is small, it could suggest that the market is less volatile.

On a daily chart, for CAKE, the distance between the two bands has gradually narrowed since the beginning of the year.

Although CAKE’s Relative Strength Index (RSI) and its Money Flow Index (MFI) were still positioned below their respective neutral zones at press time, they have been on an upward trend since the start of the new bull cycle. This indicated that the buying activity has meanwhile grown.

However, with CAKE’s price between the upper and lower bands of its BB, it indicated that the market was in a state of consolidation or indecision.

When the price is in the middle of the bands, it could mean that the market is waiting for a catalyst or new information before making a move.

It may also indicate that there are an equal number of buyers and sellers in the market and neither side can gain the upper hand, keeping the price of the asset relatively stable.

Source: TradingView

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