- The price of CAKE has fallen more than 30% in the past month.
- This occurred despite increased trading volume on PancakeSwap.
CAKE, the token that powers BNB Chain’s leading decentralized exchange (DEX) PancakeSwap, is said to have lost 32% of its value since peaking at $3.6 on December 29, 2023. CoinMarketCap.
At press time, the token was trading at $2.45, its lowest price in a month.
This price drop comes despite a recent surge in DEX trading volume.
According to data from DipilamaPancakeSwap’s trading volume in January totaled $15 billion, the highest since May 2023.
As of January 31, PancakeSwap’s TVL was $1.56 billion, down 3% from $1.52 billion in December.
Interestingly, despite PancakeSwap’s surge in trading volume, it recorded a double-digit decline in protocol fees in January.
Source of data token terminal The DEX said it recorded trading fees totaling $9.4 million in January. This represents a 16% decrease compared to December fees of $11.4 million.
Protocol revenues also plummeted due to declining transaction fees. In January, PancakeSwap reported total monthly revenue of $3.1 million.
Last month, the protocol’s revenue totaled $3.6 million.
Cake lovers, avoid sugar
CAKE’s momentum indicator lies below their respective center lines at the time of writing, suggesting that buying pressure is waning.
For example, the token’s Relative Strength Index (RSI) was 38.56, trending close to oversold territory, while its Money Flow Index (MFI) returned a value of 38.15.
At these values, these indicators show that CAKE selling significantly outpaces accumulation.
Confirming the high bearish sentiment, CAKE’s MACD line (blue) was below 0 at -0.105.
When an asset’s MACD is below 0, it means that its short-term average is below the average, which signals that selling pressure is stronger than buying pressure.
Read 2023-24 Price Prediction for PancakeSwap (CAKE)
The Arun up line (orange) was 0%, showing that CAKE’s recent high was reached a long time ago.
This indicator identifies the trend strength of crypto asset price movements and potential trend reversal points.