PancakeSwap’s CAKE has broken an eight-month resistance level, signaling a potential 34% price increase to $4.25 if momentum sustains, driven by BNB’s rally and rising trading volumes.
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CAKE surged 15% on July 28, trading near $3.21 amid strong market momentum.
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BNB’s all-time high boosted sentiment across the BNB Chain ecosystem, benefiting PancakeSwap.
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Open Interest on CAKE futures rose 67%, but rising exchange inflows suggest some traders may book short-term profits.
PancakeSwap CAKE breaks key resistance with 34% upside potential amid BNB rally and high trading volume. Track the latest crypto trends with COINOTAG.
CAKE Breaks 8-Month Resistance, Riding BNB Rally
PancakeSwap’s native token, CAKE, has decisively broken above the $2.90 resistance level that held since December 2024. This breakout aligns with Binance Coin’s (BNB) recent surge to $860, which has revitalized investor confidence across the BNB Chain ecosystem. CAKE’s price jumped 15% on July 28, trading around $3.21, supported by a 202% increase in trading volume, indicating strong renewed interest from traders and investors alike.
How Does BNB’s Rally Impact PancakeSwap?
The BNB price rally directly benefits PancakeSwap as it is the largest decentralized exchange (DEX) on the BNB Chain by Total Value Locked (TVL) and trading volume, according to DefiLlama data. When BNB’s price rises, the value of assets locked in PancakeSwap increases, boosting CAKE’s market performance. This correlation has been a key driver behind CAKE’s recent price momentum.
Source: X (Formerly Twitter)
Technical Analysis: CAKE’s Ascending Triangle and Price Targets
Technical charts from TradingView reveal that CAKE has formed an ascending triangle pattern after breaking the $2.90 resistance, a level it tested multiple times over the past eight months without success. This pattern typically signals bullish continuation. If CAKE maintains its position above $2.90, the token could surge approximately 34%, reaching a target price near $4.25.
Source: TradingView
What Does Rising Open Interest and Exchange Inflows Indicate?
Open Interest (OI) in CAKE futures has surged 67% to $100 million, reflecting growing bullish sentiment. Binance data shows a Long/Short ratio of 1.82, with 64.51% of top traders holding long positions. However, nearly $757,000 worth of CAKE was transferred to exchanges on the same day, suggesting some traders may be preparing to take profits amid the rally.
Source: CoinGlass
Frequently Asked Questions
What is driving PancakeSwap CAKE’s recent price surge?
CAKE’s price surge is driven by breaking a key resistance level, a rally in Binance Coin (BNB), and increased trading volume, signaling renewed investor interest.
How does BNB’s performance affect PancakeSwap?
BNB’s price increase raises the value of assets on the BNB Chain, directly benefiting PancakeSwap as the largest DEX on the network by TVL and volume.
Key Takeaways
PancakeSwap’s CAKE broke above an 8-month resistance level, with a 34% upside potential to $4.25 if momentum holds. However, rising exchange inflows suggest possible short-term profit booking.
- CAKE surged 15% on July 28, trading near $3.21 amid strong market momentum.
- BNB’s all-time high boosted sentiment across the BNB Chain ecosystem, benefiting PancakeSwap.
- Open Interest on CAKE futures rose 67%, but rising exchange inflows suggest some traders may book short-term profits.
Conclusion
PancakeSwap’s CAKE breaking its long-standing resistance marks a significant bullish signal, supported by BNB’s rally and increased trading activity. While the outlook remains optimistic with a potential 34% price rise, traders should watch for profit-taking signs amid rising exchange inflows. COINOTAG will continue monitoring these developments to provide timely updates.
