PancakeSwap’s native token CAKE has shattered an eight-month resistance barrier, signaling potential for a significant price surge. The token recently climbed 15% to trade near $3.21, supported by a 202% spike in trading volume indicating heightened market activity.
CAKE’s rally aligns with BNB’s strong performance, as PancakeSwap operates as the largest decentralized exchange on BNB Chain by total value locked and trading volume. Technical analysis reveals CAKE has formed an ascending triangle pattern, suggesting a potential 34% price increase to $4.25 if it maintains support above the $2.90 level.
Market sentiment appears bullish with CAKE futures Open Interest surging 67% to $100 million. On Binance, the Long/Short ratio stands at 1.82 with 64.51% of top traders holding long positions. However, caution is warranted as approximately $757,000 worth of CAKE was recently transferred to exchanges, potentially indicating profit-taking activity.