PancakeSwap (CAKE) Surges 42%—Is $5 the Next Target for the Top Gainer?
PancakeSwap (CAKE) surges 42%, topping the charts. Will it break $5 next?
By Tylt Editorial Team
PancakeSwap (CAKE) jumped 42%, reaching a high of $3.18 this week.
Daily trading volume surged 371%, hitting $1.13 billion, with $2.86M liquidated.
Revenue-sharing programs and strong technical signals drive bullish momentum.
PancakeSwap (CAKE) has emerged as the top-performing altcoin, skyrocketing over 42% in the past week. After weeks of selling pressure in the crypto market, CAKE's recent rally has positioned it as a strong contender for further gains, potentially aiming to hit the $5 mark. The asset’s price climbed from an early-week low of $2.06 to a high of $3.18, before stabilizing at $2.92 at the time of writing. This significant rebound is supported by a 371% spike in daily trading volume, which reached $1.13 billion.
The impressive 97.41% weekly gain stems largely from PancakeSwap’s innovative revenue-sharing program. Since early 2024, the platform has distributed over 770,527 CAKE tokens, equivalent to $1.9 million, to stakers. This initiative has fueled demand, as users seek lucrative staking rewards. Additionally, PancakeSwap continues to develop its protocol, enhancing liquidity swaps between chains with maximum MEV protection.
Technical indicators present mixed signals for CAKE’s price trajectory. The four-hour candlestick suggests a nearby resistance level at $3.04, which could pave the way for a bullish push toward the $3.25–$3.50 range. However, if bearish pressure takes hold, CAKE’s price may retreat to $2.78, with the potential to drop further to $2.52.
Key metrics hint at sustained bullish momentum. The MACD indicator shows the asset above the signal line, reflecting positive sentiment. Meanwhile, the Chaikin Money Flow (CMF) score of 0.14 indicates moderate buying pressure in the market. The Bull Bear Power (BBP) metric, currently at 1.975, underscores stronger bullish than bearish momentum. However, with an RSI of 73.77, CAKE is in overbought territory, suggesting potential short-term pullbacks.
The surge in PancakeSwap’s price underscores the growing interest in its platform and innovative staking rewards. As CAKE gains momentum, the next key challenge will be testing and surpassing the $3.50 resistance. If successful, the $5 milestone may not be far off. However, caution remains necessary given the volatile nature of crypto assets and potential downside risks.
