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PancakeSwap’s CAKE token surged significantly on March 18, jumping 23% to reach an intraday high of $2.63. This sharp increase pushed its weekly gains close to 70%, showcasing strong momentum in the cryptocurrency market.

CAKE’s Performance in Numbers

The daily trading volume for CAKE tripled, hitting approximately $1.12 billion, while its market capitalization approached $760 million. This rally was accompanied by heightened interest from derivative traders. According to market data, open interest soared 73% over the past day to $96 million, a substantial increase from $30 million at the start of 2025.

PancakeSwap: Dominating Decentralized Exchanges

PancakeSwap has emerged as the most active decentralized exchange (DEX) by daily trading volume for two consecutive days. Recent data shows PancakeSwap processed nearly $1.64 billion in 24-hour trading volume on March 18, surpassing competitors like Uniswap ($1.021 billion) and Raydium ($334.98 million). During this period, PancakeSwap captured over 30% of the DEX market share.

Key Drivers Behind CAKE’s Surge

Several factors contributed to PancakeSwap’s strong performance:

  • Binance’s Regulation Compliance: Binance recently announced plans to delist Tether (USDT) and eight other stablecoins for users in the European Economic Area (EEA) by March 31 to comply with the EU’s MiCA regulations. This decision appears to have led Binance users to move their USDT holdings to PancakeSwap, boosting its trading volume. The platform processed over $352.4 million in USDT trades in just 24 hours, accounting for approximately 31% of its total volume.
  • Memecoin Interest: Binance founder Changpeng Zhao reignited interest in memecoins after a tweet inspired the creation of the BNB Chain-based token MUBARAK. The token has since surged over 270% in the past week. MUBARAK became the third most traded asset on PancakeSwap, trailing only USDT and Wrapped BNB (WBNB).
  • Binance’s Investments: Binance’s recent $2 billion investment in an Abu Dhabi-based tech investment firm has bolstered confidence in Binance-backed projects like PancakeSwap, which operates on the BNB Chain.
  • Token Burning: PancakeSwap recently burned over 9.3 million CAKE tokens, worth approximately $23 million. Token burns reduce the circulating supply, increasing scarcity and potentially driving up the token’s value over time.

On-Chain Metrics Indicate Bullish Sentiment

On-chain data reveals strong bullish sentiment surrounding CAKE. Social sentiment has flipped positive, accompanied by a notable increase in daily active addresses over the past 48 hours. Additionally, large holders have been accumulating CAKE, signaling confidence in its future growth. Such accumulation often attracts retail investors, driving demand for the altcoin.

Technical Analysis: CAKE Price Outlook

Technical indicators suggest a sustained bullish trend for CAKE in the coming days. On the daily USDT price chart, CAKE has broken above a descending resistance trendline formed since February 13, characterized by lower highs and lower lows.

The 50-day exponential moving average (EMA) is showing signs of a golden cross, as the 50-day EMA is poised to cross above the 200-day EMA. This is typically a bullish signal that indicates potential for further gains. Additionally, the MACD lines are trending upward, and the Supertrend indicator has turned green, reinforcing a positive outlook.

Resistance and Support Levels

CAKE is currently eyeing resistance at $2.65. A breakout above this level could propel the token to its next target of $2.95, which it last reached in February. However, if the uptrend slows, CAKE may pull back to $2.33. For the bullish rally to continue, analysts emphasize that CAKE must hold above the $2.40-$2.70 support range. Maintaining this level could enable CAKE to build momentum and target $2.90 as the next resistance.

Disclosure: This article does not constitute investment advice. It is intended for informational and educational purposes only.

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