PancakeSwap [CAKE] recently announced that Primal, an athlete-fan token project, will begin using its syrup pool farm on December 28th. Users will now be able to stake CAKE in order to earn PRIMAL as a result of this new development.
The farm will offer 0.2x CAKE prizes for the first 48 hours, followed by 0.1x rewards. PRIMAL integrates with activity trackers such as Fitbit, Apple, Oura, and Whoop, allowing users to earn tokens while exercising.
CAKE’s reaction to this update was subpar, with its daily chart turning red. CAKE’s price has dropped by more than 4% in the last seven days, according to CoinMarketCap. Furthermore, at the time of publication, it was trading at $3.25, with a market capitalization of more than $522 million.
Nonetheless, Santiment’s data provided some solace, as some on-chain metrics suggested that CAKE’s next price movement could be on the horizon.
The token’s Market Value to Realized Value (MVRV) Ratio has dropped significantly over the last week, which could be an indication of a market bottom. Furthermore, CAKE’s velocity increased, increasing the likelihood of a trend reversal.
CAKE’s social dominance increased several times last week, indicating its popularity. Not only was CAKE’s social dominance demonstrated, but so was its popularity. This was due to the fact that it ranked second on the list of the top BNB Chain projects in terms of the number of mentions in the last 24 hours.
PancakeSwap’s burn rate was also encouraging for the network, as it recently burned 6,808,702 tokens worth more than $22 million.
Despite the fact that the metrics were in CAKE’s favor, market indicators painted a bleak picture in favor of the bears. The Exponential Moving Average (EMA) Ribbon revealed that sellers had a market advantage because the 20-day EMA was lower than the 55-day EMA.
Furthermore, CAKE’s Chaikin Money Flow (CMF) fell, indicating a bearish trend. However, the Relative Strength Index (RSI) provided some respite because it was approaching the oversold zone. This could give investors hope for a price increase in the near future.