• PancakeSwap [CAKE] broke into the top five of daily active users (DAU) with 127,790.
• Despite the upturn in usage, CAKE failed to register a price increase and experienced a 2.56% loss in 24 hours.
• Investors may be taking profits due to an overbought RSI and continually hitting the upper Bollinger Bands (BB).
PancakeSwap’s DAU Surge
PancakeSwap saw a significant surge in Daily Active Users (DAU), breaking into the top five with 127,790 according to Token Terminal. This 12.1% increase in 24 hours indicated a surge in address interaction and transactions, being only behind Binance Coin [BNB], Polygon [MATIC], and Ethereum [ETH].
CAKE Price Not Keeping Up
Despite this strong performance, CAKE has yet to register an increase in its price. At press time, it had lost 2.56% of its value in the last 24 hours, with similar losses over seven days but gains of 26.53% over 30 days according to CoinMarketCap. The Relative Strength Index (RSI) indicates that selling pressure could be increasing due to the token being overbought as it was around 70 on 24 – 29 January before slipping back down currently at 62.75 on the daily chart according to TradingView.
Proposed Changes To Emissions
PancakeSwap is looking to make changes to its emissions by streamlining activity and voting started on 30 January which will end within 24 hours of its start date. This proposal aims to alternate distribution between staking, farming, and trading without changing total emissions overall.
Price Reversal On The Horizon?
Due to various metrics such as RSI and BB indicating an overbought status for CAKE combined with investors potentially taking profits, there might be an impending price reversal lower than what was seen recently for CAKE if these trends continue according to TradingView data analysis..
Overall PancakeSwap’s DAU surged significantly enough for them break into the top five however their token [CAKE] has not seen any real gains from this despite having some losses more recently due potential profit-taking by investors combined with metrics such as RSI suggesting it has become overbought