• PancakeSwap’s [CAKE] Daily Active Users (DAU) increased to 127,790, allowing it to break into the top five according to the metric.
• Despite the upturn in usage, CAKE failed to register a price increase, losing 2.56% of its value in the last 24 hours.
• The Relative Strength Index (RSI) and Bollinger Bands (BB) indicated that there might be selling pressure, leading to a bearish momentum for CAKE.
PancakeSwap recently achieved a monumental milestone as its Daily Active Users (DAU) increased to 127,790, allowing it to break into the top five according to the metric. The surge in address interaction and transactions indicated by the 12.1% increase in 24 hours was an impressive feat and the automated market maker was now only behind the Binance Coin [BNB], Polygon [MATIC], and Ethereum [ETH] in that regard.
However, despite the upturn in usage, CAKE failed to register a price increase and was actually losing value in the last 24 hours. CoinMarketCap data showed that the Binance Smart Chain token had lost 2.56% of its value in the last 24 hours, though it had enjoyed a 26.53% increase in the last 30 days. This might be linked to a slack in market momentum, as well as investors selling off their hot CAKEs in order to take profits.
The Relative Strength Index (RSI) and Bollinger Bands (BB) also indicated that there might be some selling pressure, leading to a bearish momentum for CAKE. The RSI was 62.75 whereas between 24 – 29 January, the indicator was around the 70 overbought region. This could be a sign of a reversal, although not necessarily significant. The BB also showed that CAKE’s volatility was not extreme nor did it obviously contract.
Overall, PancakeSwap [CAKE]’s impressive surge in DAU should be seen positively, however, it is likely that CAKE eventually falls to a bearish momentum due to possible selling pressure.