Crypto Trends: PancakeSwap, Binance Coin
Latest news and a detailed price analysis etcn PancakeSwap (CAKE) and Binance Coin (BNB) crypto assets.
Focus on PancakeSwap (CAKE) and Binance Coin (BNB) crypto assets
It is worth mentioning that PancakeSwap (CAKE) is a DEX (Decentralized Exchange) built on the Binance Smart Chain, which allows exchanging coins using non-stored wallets.
BNB, on the other hand, is the cryptocurrency that powers the BNB Chain ecosystem. As one of the most popular utility tokens in the world, not only can you trade in BNB as you would any other crypto, but it can also be used for a wide range of applications and benefits.
PancakeSwap Price Prediction: Trend Reversal? Relationship with crypto Binance Coin
Pancake Swap investors may be looking at a reversal as sellers try to enter the trade. However, investors’ hopes seem to be dashed by the coin.
In fact, the price of CAKE is fluctuating in the bearish region. Therefore, to increase the price and investors’ optimism, bullish traders need to act and make an extra effort.
Otherwise, the bears can push the basket down and CAKE can start to lose their potential.
Current market price is approx $3.73, representing an intraday gain of 0.44%. The coin’s price could fall to its primary support level of $3.12 if sellers reverse the market trend.
However, the secondary support level of $2.90 could be reached if bears take control of the market. On the other hand, if the bullish gains control, the price may rise to the primary resistance level of $3.95 and, if they manage to push it further higher, to the secondary resistance level of $4.69.
Investors would benefit from this upward trend, but current investors would be discouraged. However, this may provide an opportunity for new investors to enter the market.
During the intraday trade, there was a significant drop in trading volume of around 12.59%, indicating an increase in short selling pressure.
The current volume to market cap ratio for the CAKE coin is 0.06254. If the current bearish trend continues, it will be difficult for investors to maintain their investments.
This will pose a challenge to large investors or “whales”, especially if the bears continue to dominate the market, which is currently seeing an influx of sellers. The outcome of the market depends on whether the bullish or the bears emerge victorious.
For bulls to establish a healthy market and potential for CAKE, they must strive to meet investor expectations despite the bears’ attempts to undermine them.
CFTC Files Fit and Binance and BNB Fall 6%
The world’s largest native digital exchange asset is facing significant selling pressure after the US commodities regulator announced legal action against Binance and its CEO.
In fact, the CFTC has filed a lawsuit against the exchange and its CEO, Changpeng Zhao, for allegedly violating laws on trading and derivatives. Binance’s former Chief Compliance Officer, Samuel Limis also cited as a defendant in the lawsuit.
In that regard, Zhao said in a statement on Monday that he disagrees with the characterization of many of the issues alleged in the CFTC’s complaint.
In addition, a spokesperson told Blockworks that the company has made significant investments to ensure it does not have active US users on its platform, from increasing its compliance staff to implementing market monitoring and investigative tools.
The price of BNB, whose benefit comes from reduced fees on the exchange, fell more than 6.2% next Monday $308the hardest hit among the top twenty cryptocurrencies by market capitalization.
It is worth mentioning that BNB is the fourth largest cryptocurrency by total market capitalization with a value of 48.7 billion dollarsshows Blockworks Research data.
Why is the CFTC Suing Binance?
It appears that the CFTC is trying to strike a legal blow against the exchange in an attempt to do what others around the world have so far failed to do: bring Binance under their control.
Xavier Eckelfounder of the DeFi prePO trading platform, Blockworks had the following to say about this:
“If Binance goes bankrupt due to fines, BNB is unlikely to be worth much longer.”
The asset may retain a “phantom value”, similar to how FTXThe original token, FTT, managed to retain some of its value despite the collapse of Sam Bankman-Fried’s empire, Ekkel added.
A blow to BNB’s value follows from the start of the month turmoil for another Binance-branded token, dets BUSD stablecoin, which has faced regulatory action from the New York Department of Financial Services (NYDFS) and the SEC. Several calculations on the chain now point towards a quick end for BUSD.
In any case, other tokens seem to have fared better. The original token (HT) of the rival exchange Huobifor example fell only 3%, while the token (CRO) on Crypto.com lost 4% during the day.
LEO, which is used for trading fees and other services for Bitfinex exchange, fell about 3%. These moves are in line with the broader sell-off in the digital asset market over the past 24 hours.
Bellwether’s Bitcoin the asset lost 3.2% of its value to $27,000, technically the steepest drop since the beginning of the month. Overall, the sector’s total market cap, which measures the value of all cryptocurrencies in circulation, fell 2.3% to 1.17 billion dollars.
