CAKE: Holding A Weak Support, Hope of Wen Moon?
The most used DeFi platform on the BNB Smart Chain, which is Pancakeswap and its native token, CAKE, been holding a weak support right now. Had a rough year ending in 2021 when it dropped massively, been blogging about it and the importance of buying its dip, one of the reasons is the fact that it can be staked to yield more CAKE or can also be staked in the non cake syrup pool to yield non cake tokens. Which is quite cool, because their APY is high, you can stake, earn non cake tokens, after the stake period elapse, you can swap them for CAKE and increase your CAKE holding.
Or you can just stake CAKE and watch it auto compound, but the flexible stake APR has reduced since the launch of the Lock feature. The lock feature entails you locking your CAKE for a given amount of time, which are 1 week, 5 weeks, 10 weeks , 25 weeks and 52 weeks. These are just ways to earn CAKE while you wait for the price of CAKE to moon.
From my observation with technical analysis, CAKE is having a weak support. No convincing reversal candle on sight, just bunch of ranging candles. CAKE was launched in 2020 and it boomed after it launched, it was launched during the 2020 Bull run and the time DeFi trend just started, so lots of people were jumping on it, besides BNB fee is really low compared to its competitor, Ethereum. So the only time CAKE reached the price before getting here was when it was pumping after launch.
While the crypto market was tanking few days ago, CAKE has tried to maintain the $7 - $8 price with some minor down trends, trying to form some reversal candle around $7. In crypto anything can happen, I am not expecting the price to get to $5 or below, but if it does, that means I will need to buy more dips. Wow!!! I have been buying lots of dips this season, but most of my assets are still dipping, well, I am accumulating for the long run.
DeFi is the one thing that keeps me going going, I withdraw my DeFi yields to pay for some bills and financial needs when the need arises. This is the reason I love DeFi, it’s one of the greatest gift we have in crypto and also why I am fully invested in DeFi, great way to put my inactive assets to use and earn while hodling.
In as much as the support looks weak, I still love CAKE and the project, yeah, I will be buying some just incase. This is not a financial advise.
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Actually, I feel CAKE is a falling knife.
And I will not catch it.
I just sold out all my CAKEs when CAKE introduced Lock feature. I see it will go the same direction with MDX - very high APR at the beginning to attract investors, after investors locked their CAKEs, the APR will be reduced significantly. After that, you just only can see your CAKE value over time and can not do anything.
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That’s quite sad, will be watching from afar