DGminer

PancakeSwap Price Prediction

Long
BINANCE:CAKEBUSD   CAKE / BUSD
Hello my fellow traders and investors!
Let me share my thoughts for PancakeSwap...

At the daily chart we can clearly see in CAKE's RSI three major peaks (A,B,C) all of these three peaks found resistance at about 91.34 RSI level.
From peak A to peak B we had 182.42% ROI , from peak B to peak C we had 153.85% ROI .
From each peak we have diminishing returns so we can assume that the ROI from peak C to the coming peak D will be less than 153.85%
Fibonacci retracement points to a key level at $45.224, that price is 110.69% ROI from RSI's peak C
If the coming peak D will respect the RSI's resistance at 91.34 then the price of $45.224 seems like a good candidate... it has both diminishing returns and aligns well with a key Fiboannaci level.

No need to hurry, consolidating above $16.4319 will build us a strong foundation for a healthy price discovery in the near future.
Consolidation for some days above $18.941 and below the previous all time high at $21.45 would be even better.

In my opinion It's CAKE's destiny to retest the previous all time high at $21.45 and break though to new prices.
At the moment we have to deal with the RSI's resistance at 73.32
BTC dictates the market, with bullish BTC it's a matter of time we will break through these resistance levels.

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Why will CAKE break these resistance levels?

Because it is undervalued, lets make a comparison with the main competitor Uniswap:

Uniswap market cap 15,6 billion, PancakeSwap market cap 2,5 billion
PancakeSwap is 6,25 times smaller, If PancakeSwap goes to half of Uniswap's market cap then Cake's price would be $55

Last 7 days Uniswap had 214k users (and is dropping) while PancakeSwap had 166k users (and is growing) making PancakeSwap with only 1,2 times less users.
If we assume Uniswap's token is priced according to its users then Cake's price should be $91.6

PancakeSwap's market cap to TVL ratio is 0,44 while Uniswap's ratio is 2,93.
If PancakeSwap goes to half of Uniswap's market cap to TVL ratio then Cake's price would be $59

PancakeSwap has more features than Uniswap, it has staking with high APRs, lottery, ntf gallery etc

The more the Ethereum price is surging the more it will make Uniswap ridiculously unaffordable to trade.Uniswap has more tokens to trade but new tokens will prefer to launch to PancakeSwap for cheaper fees.
They say Ethereum Optimism will fix the fee issues at July but it is well know the Ethereum team always delays to deliver, this could be one more fake promise to retain the prices


PancakeSwap on 10th of April 2021 will burn the biggest amount of Cake tokens, making the Cake token deflationary.
Early Q2 they will release the PancakeSwap V2, the version 2 will be amazing, my estimation is that when they will announce the exact day of releasing we will see a nice surge in Cake's price.

If the market as a whole remain bullish with low BTC dominance then PancakeSwap (and BNB) will explode, going above $50 is very possible.

Lets see how Cake tastes on the moon :)



Comments

I believe you. Nice work
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DGminer monicsss
@monicsss, I am glad you find it useful! wish you all the best :)
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