Decentralized finance (DeFi) protocol PancakeSwap has launched version 3 of its automated market maker platform on BNB Chain and Ethereum, with the upgrade encompassing performance improvements and lower fees.
PancakeSwap is a popular DeFi platform that enables users to trade cryptocurrencies without intermediaries. It operates as an automated market maker (AMM), meaning that it relies on a smart contract to determine the price of tokens based on the ratio of supply and demand.
One of the key features of PancakeSwap V3 is enhanced capital efficiency. In the previous version of the platform, liquidity from providers (LPs) was distributed uniformly along the price curve of trading pairs. This approach was considered inefficient because assets typically trade within certain price ranges. V3 allows liquidity providers to select a custom price range to provide liquidity, allowing specific control over capital investments to higher volume trading ranges.
Moreover, PancakeSwap V3 features four new trading fee tiers ranging from 0.01% to 1%, which is a change from V2’s standard 0.25%. Every token pair can have liquidity pools for each tier. PancakeSwap expects asset pairs to be drawn to tiers where incentives for LPs and traders align. This approach is an effort to balance between traders targeting the lowest fees while still incentivizing LPs. The higher percentage trading fee tiers cater to assets that have higher impermanent loss or lower liquidity. This mechanism intends to provide more fee revenue and incentive for LPs.
PancakeSwap caters to a broad DeFi user base, accounting for over $2.5 billion of total value locked and serving over 1.5 million unique users. The platform also revealed upcoming features that are still in development, including a trading rewards program incentivizing traders with exclusive benefits, while a position manager feature aims to improve user experience when depositing tokens as liquidity.
In other news, Arbitrum (ARB) has been in the spotlight in March, with its highly-anticipated airdrop consolidating around $3.3 million from over 1,400 addresses into two controlling wallets. Arbitrum is a layer-2 scaling solution for Ethereum that aims to improve its scalability and lower its transaction fees. Its airdrop has generated significant interest from DeFi enthusiasts who are looking for new opportunities to earn rewards.
In summary, PancakeSwap V3 is a significant upgrade that aims to improve capital efficiency and lower trading fees. It also features four new trading fee tiers that cater to different types of assets and traders. With over 1.5 million unique users and more upcoming features in development, PancakeSwap is likely to remain a popular DeFi platform.
Developers of the decentralized exchange, PancakeSwap, on October 20, proposed its deployment to the Aptos blockchain due to the chain’s innovative and technical capabilities.
The proposal read, “After careful analysis, we are proposing to deploy on Aptos.” Currently, PancakeSwap is based on the BNB chain with a daily volume of about $47 million. However, the protocol developer wants to try a new move by migrating to Aptos.
Citing the proposal, PancakeSwap chose to deploy to the Aptos chain because it is a next-generation Layer 1 with low transaction costs, high transaction throughput, and fast transaction speeds. And in addition, the Aptos team has worked on multiple crypto products, specifically in the web3 industry.
Also, Aptos has a “vibrant developer ecosystem” with many protocols in the pipeline. The developers stated in the proposal that a “large proportion of its ecosystem is suitable for PancakeSwap partnerships and products.” Finally, the developers added that PancakeSwap had developed a strong relationship with the Aptos team.
If the community passes the proposal, PancakeSwap will be deployed with four main features, including swaps, farms, pools, and initial farm offerings on Aptos by Q4 2022. As the developers stated in the proposal, this move will be made quickly so PancakeSwap can establish itself as the leading DEX on Aptos.
Additionally, the PancakeSwap native token, $CAKE, will also be natively available on the Aptos blockchain, making it the first time $CAKE will be natively available on other chains. A vote for the proposal will commence on the platform today.
Founded by former Meta employees Mo Shaikh and Avery Ching, Aptos blockchain is one of the latest L1 mainnet in the industry. Following its mainnet launch four days ago, it distributed 20 million Aptos ($APT) tokens as an airdrop to its early testnet users.
This, including the blockchain’s proclaimed capabilities of processing 130,000 transactions per second (TPS), has made the network gain so much traction since its launch.
However, it’s worth noting the Aptos mainnet is only handling about 16 TPS at the time of writing, though it’s notably higher than the 4 TPS it started with on the day of its mainnet launch.
Prior to its mainnet launch, Aptos Labs raised a total of $150 million in July to support further development of its programming language, as well as expand its team further and continue developing ecosystem funds designed to attract developers and grow its community.
After Binance Labs, the incubation and venture capital arm of crypto exchange Binance made a strategic investment in PancakeSwap, the network’s utility and governance token, CAKE, which has once soared by nearly 10%.
As the leading decentralized exchange (DEX) built on BNB Chain, PancakeSwap’s daily active users have reached at least 400,000 since its launch in September 2020.
CAKE was up by 5.3% to hit $4.62 before dropping over 2.5%, hitting $4.35 during the Asia trading section, with its 24-hour trading volume clocking $159 million, according to CoinMarketCap.
The investment made by Binance Labs is meant to open the doors to the next wave of blockchain adoption like Web3 exploration by providing enterprise solutions, marketing and community support, and technology development.
Bill Qian, the head of Binance Labs, pointed out:
“PancakeSwap has been leading the development and mass adoption of BNB Chain. Given that PancakeSwap is the most widely used dApp and the DeFi project with the highest TVL on BNB Chain, we have and will continue to provide strong support for the project.”
Unlike most other decentralized exchanges, PancakeSwap harnesses the BNB Chain, which uses a next-generation consensus mechanism known as Proof of Staked Authority (PoSA) to enhance efficiency levels.
Therefore, PancakeSwap represents a turning point for decentralized finance (DeFi) on BNB Chain since it paves the way for many DeFi solutions, including yield farms, synthetics, and wrapped asset swaps.
PancakeSwap’s AMM model
Using an automated market maker (AMM) model, PancakeSwap enables the swapping of BEP-20 tokens and permits users to trade against a liquidity pool.
BNB Chain is a decentralized public blockchain network launched by Binance. It has played an instrumental role in powering the decentralized application (dApp) sector. For instance, it hosts more than 1,300 active dApps in different areas like non-fungible token (NFT), Metaverse, blockchain games, and DeFi.
As a result, BNB Chain has carried out at least 3 billion transactions undertaken by 163 million unique addresses since its inception in 2020.
StakeMoon launches on the PancakeSwap decentralized exchange (DEX) today. StakeMoon listing on the PancakeSwap has created a marketplace for buyers and sellers to transact. This DEX will enable users to buy, sell, and trade hundreds of decentralized finance (DeFi) currencies without third-party involvement. The value of StakeMoon will therefore be dictated by market forces.
The StakeMoon listing announcement comes after a successful pre-sale, where the coin raised more than $500,000
PancakeSwap has the most users of any decentralized platform, ever created, and those users are now entrusting the platform with over $14 billion in funds. PancakeSwap, is an automated market maker (AMM)and its liquidity is contributed by users, known as liquidity providers (LPs), who add equal values of both sides of a liquidity pool to increase the total amount of liquidity available. In return for providing liquidity, LPs receive a share of the transaction fees generated by any pools they contribute. There is a flat 0.25% transaction fee for makers and takers, most of which is shared among the liquidity providers.
Scott Ryder, CEO of StakeMoon, shared:
“PancakeSwap was the obvious choice for StakeMoon’s initial exchange listing. The DEX offers unique benefits to provide an excellent trading experience, including extremely low transaction fees and rapid confirmation times for quick and safe trading.”
StakeMoon is a Binance Smart Chain-based autonomous staking and liquidity-creating technology. To discourage day trading on this coin, the creators implemented a taxation rate of 15% on all transactions. Of this figure, 10% is distributed to existing token holders, while the remaining 5% is allocated to the StakeMoon liquidity pool.
StakeMoon strives to reward long-term holders via a taxation policy that penalizes market speculators, resulting in regular dividend payments for existing token holders and flexible staking rewards. The StakeMoon tokens are not locked into a minimum redemption period. Instead, “stakers” can withdraw their StakeMoon at any given time.
StakeMoon is a Binance Smart Chain-based autonomous staking and liquidity creating technology, launching new and innovative digital cryptocurrency projects.
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A cryptocurrency inspired by Netflix’s internationally hit TV show Squid Game scammed investors in what appears to be a $3.38-million “rug pull” scheme.
Dubbed SQUID, the cryptocurrency plunged to almost a fraction of a cent minutes after crossing over $2,850 at 09:35 UTC on Nov. 1. The deadly drop oed following a 75,000% bull run, showcasing a greater demand for SQUID among traders after its debut on Oct. 26.
At the core of the retail craze lay the popularity of Squid Game. The scammers promoted SQUID as a play-to-earn cryptocurrency inspired by the South Korean TV fictional show in which people put their lives at risk to play a series of children’s games for the opportunity to win 45.6 billion won (~$38.7 million).
The marketing ploy helped push SQUID prices from $0.01 on Oct. 26 to over $38 on Sunday. The cryptocurrency then jumped to $90 on Nov. 1, ushering in a massive pumping round that pushed its price further to over $2,850, only to crash all the way down to $0.002 minutes later.
SQUID price pump and dump. Source: CoinMarketCap
Red flags
In the days leading up to the massive crash, traders had complained that they could not sell their SQUID holdings in the only available market, a decentralized exchange called PancakeSwap. In their defense, SQUID founders said they had deployed an innovative “anti-dumping technology” that limits people from selling their tokens against lower demand.
A lot of my normie friends bought this $SQUID game token and couldn’t sell i (“anti-dump feature”)
Now look what happened pic.twitter.com/wq5egYBKFa
— Friend of Peach (@WaymanCap) November 1, 2021
“The more people join, the larger reward pool will be (sic),” the Squid Game white paper read, adding:
“Developers will take 10% of the entry fee with the remaining 90% given to the winner.”
Major news network CNBC also published the Squid Game cryptocurrency founders’ claims without omissions, insofar that it called SQUID the “very own brand” of the Netflix show.
The Squid Game cryptocurrency founders also said they were affiliated with the Netflix show as its official token partner. They also claimed that they had entered a strategic partnership with CoinGecko, a crypto data provider. However, in an interview with Cointelegraph, CoinGecko co-founder Bobby Ong refuted the claims, saying:
“[SQUID] did not meet our listing criteria, hence it will not be listed on CoinGecko. It’s most likely a scam.”
CoinMarketCap, a rival of CoinGecko, listed SQUID on its platform but warned visitors about the cryptocurrency’s dubious nature in a notice that read:
“There is growing evidence that this project has rugged. Please do your own due diligence and exercise extreme caution. This project, while clearly inspired by the Netflix show of the same name, is NOT affiliated with the official IP.”
Related: YouTube channels hacked and rebranded for livestreaming crypto scams
Meanwhile, analysts also noted that the Squid Game token founders had no profiles on LinkedIn, with Twitterati Crypto Tyrion ruling SQUID as a “100% rug pull.”
Closed Telegram group: ❌❌❌❌
Closed discord: ❌❌❌❌
Blocked Tweets comments: ❌❌❌❌
No founder Linkedin: ❌❌❌❌
CNBC article to pump: ❌❌❌❌
CONFIRMED SCAM@IncomeSharks @jaynemesis
— Crypto Tyrion (@Cryptotyrion) October 29, 2021
It now appears like a “game over” scenario for the SQUID bag holders.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Ethereum’s (ETH) October protocol revenue is dwarfing Axie Infitinty (AXS) and other crypto protocols.
Data collected by crypto metrics site Token Terminal shows that the second-largest cryptocurrency by market cap’s protocol revenue over the last 30 days reached $932.8 million.
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Ethereum’s October revenue intake is more than five times that of the play-to-earn blockchain platform Axie Infinity, which saw nearly $185 million in revenue during the same timespan.
Source: Token Terminal
Ethereum-based decentralized exchange dYdX (DYDX) saw the third-highest protocol revenue over the past month at $70.4 million, followed by OpenSea at $62.7 million and PancakeSwap (CAKE) at $20.5 million.
Ethereum competitor Avalanche (AVAX) enjoyed the 16th-highest protocol revenue at $2.9 million.
Ethereum’s second-consecutive monster month of revenue comes alongside the rollout of the Altair upgrade, which is laying the groundwork for Ethereum’s merge into a proof-of-stake system.
It also follows the recent implementation of EIP-1559, which introduced a new mechanism that burns a portion of Ethereum’s transaction fees as a way of countering inflation.
ETH is trading at $4,428 at time of writing, down just slightly from the freshly printed all-time high (ATH) of $4,467, according to CoinGecko.
AXS is also seeing new ATHs today, trading at $158.49 at time of writing, down slightly from a very fresh high of $162.24.
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SushiSwap (SUSHI) prices crept higher on Sept. 16 following another day of gains for decentralized exchange (DEX) tokens.
The SUSHI/USD exchange rate rose by 7.54%, or $1.14, to reach $16.31 for the first time since May 21. The pair’s upside move pushed its 24-hour adjusted timeframe profits up to 23%, making SUSHI the best-performing DEX token in the given period.
For instance, UNI, the token representing the leading DEX Uniswap by market cap, jumped 6.23% against the U.S. dollar in the previous 24 hours. Meanwhile, PancakeSwap (CAKE) rose 2.5%, THORChain (RUNE) climbed circa 13%, and Curve (CRV) inched higher by over 4.5%.
The performance of top DEX tokens in the previous 24 hours. Source: Messari
Why is SushiSwap leading the DEX pack?
Decentralized finance sector analyst Kris Kay noted that SushiSwap, as a DEX platform, has lately branched out to more blockchains than its peers. As a result, it has been generating more fees for its users, thus raising the prospect of holding SUSHI tokens.
Specifically, the latest bout of buying in SUSHI markets came a day after SushiSwap announced its deployment on Arbitrum, a layer-2 scaling solution for Ethereum-powered decentralized applications or DApps.
With super fast transaction speeds, you never have to sit and wait for tx confirmation again at https://t.co/aoFOsbikeu.
Just try switching your network to Arbitrum today!
️️️️️️️
$30M TVL and counting… pic.twitter.com/qgmybXWhjt
— SushiChef (@SushiSwap) September 15, 2021
It also revealed that stakers had locked $30 million worth of SUSHI tokens into Arbitrum’s smart contracts.
Kay noted that SushiSwap’s efforts to scale its DEX solutions across multiple layer-1 and layer-2 chains also cater to its ecosystem’s growth. For instance, the platform has launched many new services in recent months, including DeFi liquidity provider Onsen and lending/borrowing dapp Kashi.
On Sept. 2, SushiSwap also unveiled its upcoming non-fungible token (NFT) marketplace, dubbed Shoyu. The sales volumes for blockchain-verified unique digital collectibles grew from $13.7 million in the first half of 2020 to $2.5 billion in the first half of 2021.
SUSHI price outlook
As a result, SUSHI has beaten its DEX rivals in terms of interim returns. Its profits in the previous seven days sit over 45% compared to UNI’s 16.93%. Nonetheless, SUSHI lags in year-to-date (YTD) gains, jumping more than 370% compared to UNI’s 474% gains.
Meanwhile, PancakeSwap’s CAKE has led the top DEX pack after delivering more than 3,330% YTD returns.
“SushiSwap is currently the 5th highest earning protocol,” Kay tweeted, hinting that the DEX has a likelihood of growing higher in the coming sessions.
“SushiSwap started out as a decentralized exchange, but it’s evolving to so much more,” he said.
“A suite of DeFi products, all generating revenue for the community treasury, and of course SUSHI holders.”
4/
Sushi Swap is currently the 5th highest earning protocol
While majority of fee-revenue goes to Sushi treasury, $SUSHI holders still control this. $SUSHI stakers also receive 0.05% of all fee-revenue. pic.twitter.com/cu4GMiVGU2
— Kris Kay | DeFi Donut (@thekriskay) September 14, 2021
Related: Altcoin Roundup: Time to rotate! Data suggests traders are shifting from NFTs to DeFi
On the technical charting front, SUSHI has fallen behind in the recent altcoin market boom. But the SushiSwap token’s climb in the recent sessions has had it break above $15, a key psychological resistance level, now acting as support.
SUSHI/USD daily price chart featuring its next upside price targets. Source: TradingView.com
Just looking at Binance Coin’s (BNB) reported market capitalization, one might conclude that the token is the dominant asset when compared to other exchange tokens.
Although there is no direct relationship between Binance’s exchange volume (or revenue) and token economics, traders seem to use it as a proxy. The controversial burn mechanism has been losing impact since April 2019, when the exchange changed the BNB whitepaper.
Initially, the whitepaper proposed a plan where BNB tokens equivalent to 20% of the exchange’s profit would be bought under a “repurchasing plan”, but the new version scrapped that plan.
Exchange tokens market cap and volume. Source: Messari Screener and CoinGecko
However, excluding the 60 million BNB that have never been in circulation drastically changes the outcome because these excess tokens are meant to be burned over time.
The remaining exchange tokens are inflationary, meaning the issuing rate is very steep. For example, Uniswap (UNI) has 611 million tokens in circulation, but that number is expected to reach 1.14 billion in 10 years.
BNB price (above) and Binance exchange daily volume (below). Source: TradingView and Nomics
How BNB differs from the other exchange tokens
BNB has an actual use case apart from trading fee rebates, and it is the primary asset pair on the Binance Smart chain. BNB captures a portion of the $17 billion total value locked in the BSC smart contracts, and it has decent market share and representation on decentralized exchanges. As a result, the network creates perpetual demand for BNB.
Based on these simple figures, should analysts discount BNB’s value by 50% compared to other exchange tokens? As mentioned earlier, the market appears to be pricing BNB based on Binance exchange’s volume, and thus it makes sense to use that as a valuation proxy.
Uniswap has been averaging $1.63 billion daily volume, although it offers exclusively spot markets. Hence, the figure is comparable with Binance’s $24.3 billion average, not factoring derivatives markets.
Using Uniswap’s 93.3% lower volume, the gross estimate accrues a $10.3 billion market capitalization based on 50% of BNB’s reported $76.7 billion. Thus, the prediction comes out 36% below UNI’s actual data.
PancakeSwap, the leading Binance Smart Chain’s DEX, has been handling a $750 million in daily volume. Using the same 50% of BNB’s market capitalization methodology, CAKE’s estimated valuation should be $4.73 billion, which is surprisingly in line with the current figure.
FTX and SUSHI are trading at a discount
Moving to a centralized exchange, FTX has amassed $1.7 billion in daily volume, including derivatives markets. Consequently, the indicator can be compared to Binance’s $54 billion average. Despite its 96.8% lower volume, FTX’s gross estimate valuation is $4.83 billion — 11% below the actual number.
Using Huobi’s adjusted $5.4 billion volume and Binance’s entire $54 billion daily average volume, including its derivatives products, results in a $15.34 billion estimated valuation. When considering Huobi Token’s unprecedented inflationary model, applying a heavy discount for the reported market capitalization makes sense.
Lastly, Sushiswap aggregates a daily $305 million transaction volume. Considering Binance’s $24.3 billion spot-only data, the same estimate yields a $1.92 billion valuation roughly 33% above the actual figure.
It is worth noting that this estimate does not imply an investment recommendation. This unrefined and primitive methodology simply aims to show that traders are effectively using exchange volume as a proxy for native token valuation.
While this may have worked in the past, the current regulatory, KYC, and removal of leverage trading options at centralized exchanges could impact the efficacy of this analysis method in the future.
The views and opinions expressed here are solely those of theauthorand do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Bitcoin (BTC) is knocking at the doors of the key $50,000 level and most traders are still optimistic even after the digital asset rallied 70% from the July 20 low at $29,278 to an intraday high at $49,757.04 on Aug. 21.
Monitoring resource Material Indicators pointed to a lot of puts at the $50,000 strike price and the “positive funding almost across the board (overheated),” which suggests a rejection at the current levels and a “pullback going into September.”
Crypto market data daily view. Source:Coin360
Nikita Ovchinnik, chief business development officer of 1inch Network said that several new institutional investors had taken exposure to crypto in the past year, and that “they didn’t come for short-term gains.”
Another positive sign for the crypto sector is the ever-growing list of unicorns. Analysts expect more companies to join the list as the adoption of crypto and blockchain increases.
Bitcoin’s hesitation near the $50,000 mark may shift focus to altcoins? Let’s study the charts of the top-5 cryptocurrencies that are likely to attract traders’ attention in the short term.
BTC/USDT
Bitcoin rebounded off the 20-day exponential moving average ($45,049) on Aug. 19 and the bulls pushed the price above the stiff overhead resistance at $48,144 on Aug. 20. The bears are currently attempting to stall the up-move at the psychological resistance at $50,000.
BTC/USDT daily chart. Source:TradingView
If bulls do not give up much ground and flip the $48,144 level to support, it will indicate strength. The BTC/USDT pair could then pick up momentum and start its northward march toward $58,000.
The rising 20-day EMA and the relative strength index (RSI) in the positive zone suggest that the path of least resistance is to the upside.
Alternatively, if bears pull the price below $48,144, the pair could drop to the 200-day simple moving average ($45,816). This is an important level for the bulls to defend because a break below it could embolden the bears.
The sellers will then try to sink the price below the breakout level at $42,451.67. If they succeed, it will suggest the start of a deeper correction.
BTC/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows that the bears are aggressively defending the zone between $49,500 and $50,000. If they can sink the price below the 20-EMA, the pair could drop to $46,600 and then to $44,000.
If that happens, it will suggest that the bulls are losing their grip and the pair could then remain range-bound between $44,000 and $50,000 for a few days. The bears will have to pull the price below $42,451.67 to gain the upper hand.
ADA/USDT
Cardano (ADA) is in a strong uptrend. The bulls pushed the price above the all-time high at $2.47 on Aug. 20 but the long wick on the day’s candlestick showed selling at higher levels. The altcoin formed an inside-day candlestick pattern on Aug. 21, indicating indecision among bulls and bears.
ADA/USDT daily chart. Source:TradingView
The uncertainty resolved to the upside today as the bulls have again pushed the price to a new all-time high. If buyers sustain the price above the breakout level at $2.47, the ADA/USDT pair could rally to $3.
However, the long wick on today’s candlestick suggests that bears are unlikely to give up without a fight. They will try to pull the price back below $2.36 and trap the aggressive bulls. If that happens, the pair may correct to $2.20.
If the price rebounds off $2.20, the bulls will again try to resume the uptrend. A breakout and close above the $2.47 to $2.65 will enhance the prospects of the continuation of the uptrend. Alternatively, a break below $2.20 could pull the price down to $1.94.
ADA/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows the 20-EMA is sloping up but the RSI is forming a negative divergence. This suggests that the bullish momentum may be slowing down. The first sign of weakness will be a break below the 20-EMA.
Contrary to this assumption, if bulls do not give up much ground from the current level, it will suggest strength. That could attract further buying and the pair may then rally to the psychological resistance at $3.
AVAX/USDT
Avalanche (AVAX) rallied from $18.41 on Aug. 17 to $50.27 on Aug. 21, a 173% rally within a short time. This sharp up-move has pushed the RSI above 92, indicating the rally is over-extended in the short term.
AVAX/USDT daily chart. Source:TradingView
The long wick on the Aug. 21 candlestick shows that bears are attempting to defend the psychological resistance at $50. On the downside, the first support is at $40. If the price rebounds off this level, it will suggest that bulls are not booking profits aggressively as they anticipate the rally to continue further.
A breakout and close above $44 could improve the prospects of a retest of the all-time high at $60.30.
On the contrary, if bears pull the price below the 38.2% Fibonacci retracement level at $38.09, the AVAX/USDT pair could correct to the 50% retracement level at $34.34. A break below this support will indicate that the bullish momentum may have weakened.
AVAX/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows that bears are attempting to stall the relief rally at the overhead resistance at $44.60 and the bulls are buying on dips to $40. This suggests that the pair could remain range-bound between these two levels in the short term.
If the bulls drive the price above $44.60, the pair could rally to $50.27. A breakout and close above this level will signal the resumption of the uptrend. Conversely, a break below the 20-EMA will indicate that traders are booking profits and not buying the dips. That could signal the start of a deeper correction.
CAKE/USDT
PancakeSwap (CAKE) is currently in a strong recovery. Sustained buying by the bulls pushed the price above the 38.2% Fibonacci retracement level at $22.74 on Aug. 20.
CAKE/USDT daily chart. Source:TradingView
If bulls sustain the price above $22.74, the relief rally could reach the 50% retracement level at $26.85 and then the 61.8% retracement level at $30.96. The bears are likely to mount a stiff resistance in this zone.
On the way down, the critical support to watch out for is the 20-day EMA ($20.37). If the price rebounds off this support, it will suggest that sentiment remains positive and traders are buying on dips. Conversely, a break below the 20-day EMA could open the doors for a further decline to $16.
CAKE/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows the price is trading inside a rising wedge pattern. If bears sustain the price below the 20-EMA, the pair may drop to the support line of the wedge. This level is likely to act as a strong support and a sharp rebound off it will indicate that traders are buying on dips.
A breakout and close above $24.65 will suggest the resumption of the up-move. The next target objective on the upside is the resistance line of the wedge. The bullish momentum could pick up if bulls thrust the price above the wedge.
Related:Walmart seeks crypto product lead, Dogecoin Foundation returns, Coinbase amasses $4B war chest: Holder’s Digest, Aug. 15-21
ATOM/USD
Cosmos (ATOM) had been trading in a large range between $8.51 and $17.56 since late May. The bulls pushed the price above the resistance of the range on Aug. 18, clearing the path for a possible move to the pattern target at $26.61.
ATOM/USDT daily chart. Source:TradingView
However, the long wick on today’s candlestick and the RSI above 83 suggests the rally is overextended in the short term. This could attract profit-booking by the bulls, resulting in a minor correction or consolidation in the next few days.
If bulls do not give up much ground and flip the $17.56 level into support, the ATOM/USDT pair will again try to resume the uptrend. A break above $26.61 could open the doors for a rally to $28 and then to $30.
The bears will have to pull and sustain the price below $17 to invalidate the bullish sentiment.
ATOM/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows that bears are mounting a stiff resistance near $24. Although bulls had pushed the price above this resistance, they could not sustain the higher levels as seen from the long wick on the candlestick.
A positive sign is that buyers are not dumping their positions in a hurry. The pair could consolidate between $21 and $24 for some time. A breakout and close above $24 will indicate strength and signal the resumption of the up-move.
Alternatively, a break below the 20-EMA will indicate the start of a deeper correction to $17.56.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
A popular crypto analyst and trader is calling for more bullish moves for three altcoins.
In a new Twitter thread, the pseudonymous trader known as The Crypto Dog tells his 572,000 followers that Elrond (EGLD), which is up from around $100 to $150 in the past couple of weeks, is likely destined for bullish continuation.
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The analyst also says that EGLD might remain in an uptrend for days or weeks.
“EGLD setting up for a strong 3D after breaking out of consolidation. This could trend for days/weeks.”
Source: The Crypto Dog
The trader is also interested in PancakeSwap (CAKE), the decentralized exchange platform based on Binance Smart Chain.
The analyst says that CAKE has been in an uptrend since late July and will likely continue its ascent, possibly hitting all-time highs in the near future.
“CAKE/USD has been in only up mode since late July. All time highs inbound?”
The trader is also bullish on layer-2 scaling network Polygon (MATIC), predicting that the asset will reconquer the $2 level.
“This looks like bullish consolidation on MATIC. They’re going to throw it back to $2+”
Source: The Crypto Dog
Finally, The Crypto Dog says that smart contract platform Ethereum is likely entering a consolidation phase as it trades around the $3,000-$3,200 region.
“ETH consolidating, my money is on accumulation.”
Source: The Crypto Dog
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
