PancakeSwap (CAKE) Reaches Yearly High After 160% Price Surge

Key Takeaways

• The PancakeSwap (CAKE) price increased by 160% after its Feb. 3 lows.
• PancakeSwap has nearly reached a long-term resistance trend line.
• What’s behind the CAKE increase, and how long can it be sustained?

The CAKE price has paced the market since the Feb. 3 liquidation event, surging by 160%.

The Decentralized Exchange (DEX) shows a similar increase in volume. PancakeSwap leads the 7-day volume for DEXes at $21.20 billion, surpassing Uniswap’s $16.92 billion.

PancakeSwap has improved interest in the platform through its revenue-sharing program , which distributed 770,527 CAKE last year and burned over 172,000 CAKE .

Another potential reason for the CAKE increase is the rise in the BNB price. BNB has surged over 40% since its February lows, nearing its all-time high price of $793.8. The upcoming airdrop of TapSwap tomorrow might have aided the latter’s surge.

TapSwap is a play-to-earn game that was planned to launch on TON but was switched to the BNB chain for better security, scalability, and transaction speeds.

Let’s dive into the price action and see how long this increase can continue.

CAKE Price Surge

The weekly chart shows that CAKE bounced last week, validating the $1.55 horizontal area as support. Combined with the increase in August 2024, the bounce created a double bottom pattern (white icons).

This week, the price is setting up to create a massive bullish engulfing candlestick that has nearly taken it to its long-term resistance trend line, which has existed for over two years. The trend line is currently at $4.20.

Combined with the previous two weekly candlesticks, CAKE is creating a morning star, a bullish candlestick pattern often occurring at price bottoms.

Since the bounce, technical indicators in the weekly time frame have also been bullish.

The Relative Strength Index (RSI) just crossed above 50, while the Moving Average Convergence/Divergence (MACD) has nearly made a bullish cross (black circles).

Therefore, the weekly chart indicates the CAKE surge will continue until the price at least reaches the resistance trend line.

New CAKE Cycle High?

The long-term CAKE wave count gives a bullish prediction, indicating that the upward movement will continue.

The most likely count shows that CAKE has completed waves A & B in an A-B-C structure (white) that started in November 2023.

The sub-wave count is in black, illustrating that the Feb. 3 bottom marked the end of wave B since it swept the lows of August 2024.

If the count is accurate, PancakeSwap is now in sub-wave three of wave C. This is often the sharpest portion of an upward movement, explaining the rapid CAKE price surge.

The first target for the top of the increase is at $5.35, created by giving wave C the same length as wave A.

The reaction once the price gets there can help determine whether the movement will extend.

CAKE’s Final Push

The CAKE price has shown resilience by bouncing on Feb. 3, preventing a breakdown from a long-term horizontal support area.

The reaction has been even more bullish since CAKE reached a new yearly high of $3.41 on Feb. 13.

This may be the final CAKE increase in the current cycle, taking the price to $5.35.