Here is why Pancakeswap is up by 8% today
Pancakeswap is one of the best performers in the cryptocurrency market today.
The broader cryptocurrency market is having a slow start to the week. The total cryptocurrency market cap has dipped by 0.08% so far today. However, the total market cap remains above $2.1 trillion.
Bitcoin continues to trade above $46k per coin, indicating that it is finding it hard to move towards the $50k psychological level. Ether has been trading above $3,500 and is up by less than 1% today.
However, CAKE, the native token of the Pancakeswap decentralised exchange, is up by nearly 9% today, making it the best performer amongst the top 50 cryptocurrencies by market cap.
At press time, CAKE is trading at $9.76 per coin. The rally comes after the Pancakeswap team announced the launch of its Mobox Trading Battle earlier today. The Mobox Trading Battle will see participants win up to $80,000 in tokens and nonfungible tokens (NFTs).
Key levels to watch
The CAKE/USDT 4-hour chart is currently bullish as the cryptocurrency has been performing well over the last 24 hours. The technical indicators show that it is outperforming the other major coins and tokens at the moment.
The MACD line is above the neutral zone, indicating strong bullish momentum. The 14-day relative strength index of 76 shows that CAKE is closer to the overbought region. It could soon enter the overbought territory if the positive momentum is maintained.
CAKE could surpass the first major resistance level at $11.47 before the end of the day if the rally continues. However, the second major resistance level at $13.80 should limit further upward movement in the short term.
The bears have not completely relinquished control, and CAKE could drop below $9 if the bearish sentiment in the broader market continues. However, CAKE should comfortably defend its position above the $8.07 support level.