Can CAKE Return to the Top 100? | Credit: Getty Images
Share
Key Takeaways
The CAKE price has fallen nearly 50% since reaching its yearly high of $5.24 on March 13.
CAKE created a double bottom pattern between April 13 and May 1 and bounced.
PancakeSwap’s Total Value Locked (TVL) has increased markedly since the start of the year.
PancakeSwap is the leading BNB Smart Chain decentralized exchange. Its native token, CAKE, used to be in the top 40 biggest cryptocurrencies but has fallen out of favor in 2023 and 2024, currently being outside of the top 100.
In any case, its volume and TVL surged in March-April even though its price has corrected since March 13. There are positive signs developing, resembling those that have previously led to significant increases in other cryptocurrencies.
CAKE trades above an important support level, a bounce above which can be a trigger for a notable rally, bringing CAKE back to the top 100 cryptocurrencies.
CAKE Creates Bullish Pattern but Still Trades Below Resistance
The ongoing CAKE price correction caused a breakdown from an ascending support trend line on April 13. At the time, the trend line had existed for 160 days. Then, CAKE validated the trend line as resistance (red icon) on April 23.
After the ensuing rejection, CAKE created a double bottom pattern on May 1 and has increased since. The double bottom is considered a bullish pattern.
CAKE/USDT Daily Chart | Credit: TradingView
The daily RSI and MACD have both generated a notable bullish divergence (green), supporting the bullish pattern. A nearly identical divergence has led to significant price increases for other altcoins such as TRX, which is one of the best performers since the start of May.
PancakeSwap’s Total Value Locked Keeps Increasing
In a trend observed throughout most decentralized exchanges, PancakeSwap’s TVL declined steadily starting 2021. This has changed in 2024, since the exchange enjoyed a surge in both TVL and volume. Its TVL of $3.32 billion ranks second in the DEX rankings, trailing only Uniswap’s $5.33 billion.
PancakeSwap TVL | Credit: DeFiLlama
Staking VeCake gives an APR of up to 4.31%, depending on the amount of time the token is locked. However, these rewards can grow through bribe yield, given by external bribe marketplaces in order for veCAKE holders to drive emissions toward their preferred liquidity pools and projects. This has likely contributed to the attractiveness of staking CAKE and in turn the increase in TVL.
The most traded pairs in the DEX are USDT/WBNB, USDT/USDC and ETH/BTCB, the latter of which is Bitcoin BEP2, a token on the BNB Smart Chain backed by a BTC reserve.
PancakeSwap Revenue & Fees | Credit: DeFiLlama
Besides its increase in TVL, there is a notable increase in both fees and revenues in March and April. In fact, the $15.52 million revenue in March is the highest since January 2022. It caused a net mint of over 700,000, which is a new all-time high. More than 99% of the fees were on BSC, even though PancakeSwap is available on eight other chains.
CAKE Price Prediction: $2.65 Area Holds Key to Future Trend
The daily time frame shows that the $2.65 area is crucial for the future trend’s direction. The area is both the 0.618 Fibonacci retracement support level and a horizontal support area. So, reclaiming it is an important step in creating a bullish structure.
Moreover, the decrease since the yearly high shows a completed A-B-C corrective structure (white). The sub-wave count is in black, implying the correction ended on May 1.
Even though the count is bullish, and it aligns with the positive price action and indicator readings, this possibility will not be confirmed until the price increases above the wave A low (red) at $3.50. The level also coincides with a descending resistance trend line existing since the highs.
CAKE/USDT Daily Chart | Credit: TradingView
Until then, the possibility remains that CAKE is in a five-wave downward movement (yellow) instead of an A-B-C structure.
However, as stated before, the more probable scenario is a completed correction because of the positive price action and indicator readings. A breakout from the trend line and $3.50 level can trigger an increase above the yearly high of $5.24.
CAKE Could Return to Top 100
The CAKE price has not reflected the increase in PancakeSwap’s volume and TVL since March. However, this can change if the current double bottom pattern plays out and CAKE confirms its increase above $2.65. A breakout above the $3.50 level will confirm the correction is over and could lead to new highs.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
