PancakeSwap’s CAKE token has rallied 13% over the past week and 8.2% in the last 24 hours, breaking a month-long consolidation around $1.2-$1.3. The move saw the token re-enter a trading range it has occupied for most of the past 15 months. Meanwhile, data shows a 28% surge in Open Interest for CAKE perpetual contracts, indicating heightened speculative trading interest.
The native token of the decentralized exchange PancakeSwap, CAKE, recorded significant gains recently. It rallied 13% over the past week and was up 8.2% in a 24-hour period, moving from a consolidation area between $1.2 and $1.3.
These gains allowed CAKE to work its way back within a range it has traded in for most of the past 15 months. On higher timeframes, the $1.5 horizontal level has been a significant support and resistance point since July 2023.
Analysts noted that CAKE bulls have appeared weak over the past year. Even during periods when Bitcoin set new all-time highs, CAKE struggled to breach the $3 resistance and was curtailed by a supply zone between $4.2 and $4.6 active since May 2022.
The closest key long-term resistance is identified at the mid-range level of $2.16. This swing point on the 3-day chart must be broken to flip the token’s higher timeframe trend bullish, though holders have shown eagerness to take profits near such levels.
Short-term momentum appears strong, with a 28% increase in Open Interest for CAKE perpetual contracts in 24 hours. The rising Spot CVD indicated firm spot market demand, suggesting a sustainable short-term move.
Key nearby resistance levels are at $1.5 and $1.6, with the former already breached. Analysts suggest a retracement toward $1.40-$1.45 over the next week or two could present a buying opportunity, as the short-term trend remains bullish.
Traders are advised to monitor Bitcoin price trends to navigate altcoin movements. Those already in long positions may consider taking profits in the $1.5-$1.6 region before awaiting the market’s next directional hint.
