Key Takeaways
PancakeSwap’s CAKE broke above an 8-month resistance. A 34% upside to $4.25 is in play if momentum holds, though rising exchange inflows hint at possible short-term profit booking.
PancakeSwap [CAKE] has broken above its eight-month-long resistance level, riding the broader crypto market recovery.
On the 28th of July, CAKE surged by 15%, trading around $3.17 at press time. This breakout coincided with Binance Coin’s [BNB] rally to $860, lifting sentiment across the BNB Chain ecosystem.
“It’s BNB szn”
On X (formerly Twitter), BNB Chain posted,
“Wake up babe… It’s BNB szn”
Hours later, PancakeSwap echoed the message. The excitement followed BNB’s new all-time high, which sparked fresh bullish momentum for projects within its ecosystem.
Source: X (Formerly Twitter)
You might be wondering how the BNB price rally is benefiting PancakeSwap.
According to DefiLlama data, PancakeSwap is the largest DEX on the BNB Chain in terms of Total Value Locked (TVL) and trading volume.
It benefits when BNB rises, as the value of assets held on PancakeSwap also increases.
At press time, CAKE was trading at $3.21, up 15% in 24 hours. Trading volume jumped 202% during the same period, pointing to renewed interest from both investors and traders.
This uptick is likely driven by not just CAKE’s correlation to BNB, but also rising market momentum and a breakout above its key resistance level.
CAKE price action and technical analysis
According to TradingView chart analysis, with the recent price uptick, CAKE has not only broken out the $2.90 level but also formed an ascending triangle pattern.
Historically, $2.90 has been a key resistance level since December 2024. The chart shows that the altcoin reached this level more than six times, and each time it was rejected.
Source: TradingView
However, with this breakout, the altcoin opened the path for significant upside momentum by clearing one of its key hurdles.
Based on price action, if CAKE sustains this breakout and holds above the $2.90 level, there is a strong possibility that it could soar by 34%, potentially reaching the $4.25 level.
Longs stack up, but will they take profit soon?
This bullish outlook has been gaining significant attention from the crypto community, as evidenced by a 67% surge in Open Interest (OI) to $100 million, per CoinGlass.
On Binance, the CAKEUSDT Long/Short Ratio stood at 1.82, with 64.51% of top accounts holding long positions and 35.49% short.
Source: CoinGlass
However, CoinGlass data also showed nearly $757K worth of CAKE moved to exchanges on the same day, possibly signaling short-term profit booking.
