Despite the imminent launch of PancakeSwap network’s version 3 (V3), the price of PancakeSwap (CAKE) coin has continued to fall and is currently trading at around $3.75.
Over the past few days, PancakeSwap’s price has significantly dropped from $4.035 to $3.73 – but a PancakeSwap price prediction seems to turn bullish above the $3.75 level.
The reasons for this downward trend could be attributed to various factors such as general market conditions, technical issues, regulatory changes, or geopolitical events.
Regulatory Crackdown and Risk-Off Sentiment Weigh on Crypto Market
Over the weekend, the global cryptocurrency market failed to break out of its long downward trend and remained in negative territory.
Bitcoin’s value dropped by 1% in the last 24 hours and fluctuated between $22,500 and $22,600, while Ethereum’s value also decreased by 1% and fell below the $1,600 level.
Moreover, the increasing regulatory concerns have added to the negative sentiment in the cryptocurrency market.
This has resulted in the implementation of new laws and regulations in several countries, which can significantly impact coin prices by affecting investor sentiment and market liquidity.
Additionally, regulatory actions can create uncertainty and fear among investors, leading to selling pressure and price drops.
Upcoming Launch of PancakeSwap V3
PancakeSwap, a well-known multichain decentralized exchange (DEX), is set to launch version 3 (V3) in April.
The upcoming PancakeSwap V3 is expected to introduce new features such as improved liquidity provisioning, competitive trading costs, trading incentives, and yield farming tool enhancements.
The new release of PancakeSwap V3 is anticipated to bring a range of new features and improvements to the platform, including an updated user interface, better liquidity pools, and advanced price discovery techniques.
Although there are several decentralized exchanges in the market, PancakeSwap’s popularity has made it a significant participant, and the new release might have a positive impact on the future price of PancakeSwap coin.
US Dollar’s Weakening Strength Provides Boost to Cryptocurrency Market
The weakening of the US dollar may also provide support to the crypto market.
Despite delivering mixed signals, the dollar has been trading in a tight range around 104.560 due to investors waiting for the Federal Reserve Chair Jerome Powell’s testimony and February employment data, which could impact the US central bank’s approach.
The dollar index, which compares the US currency to six major peers, decreased by 0.057% to 104.560, but it is still near a seven-week high of 105.36 reached last week.
At present, the PancakeSwap price stands at $3.75, with a 24-hour trading volume of $26,751,301.
In the last 24 hours, PancakeSwap has experienced a 1.56% decrease – the coin is ranked #72 in the world, with a current market value of $676,759,910.
With 180,624,766 CAKE coins in circulation, the maximum supply of CAKE coins is 750,000,000.
From a technical perspective, the CAKE/USDT pair is currently hovering slightly above the 61.8% Fibonacci retracement level at $3.75.
A potential bullish trend could be triggered if the pair closes above this level, with a possible price target of $3.92.
The RSI and MACD indicators indicate a weak selling trend, suggesting a potential bullish reversal for the CAKE/USDT pair if it maintains its price above $3.75.
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