CAKE Hits Yearly High as PancakeSwap Tops $3 Billion in Daily Trading Volume

PancakeSwap’s native token, CAKE, has emerged as the top-performing asset in the past 24 hours. Its value has soared by 57%, causing the altcoin to trade at an all-time high of $3.04 at press time. 

The price surge comes amid a significant increase in trading activity on PancakeSwap, solidifying its position as the leading decentralized exchange (DEX) by volume.

PancakseSwap Trading Activity Increases

Per DeFiLlama, trading activity on PancakeSwap has surged in the past 24 hours, reaching $3.02 billion. This figure outpaces other DEXes, with Uniswap trailing closely behind at $2.89 billion during the same period.

DEX Trading Volumes. Source: DefiLlama

This surge in trading activity on PancakeSwap has triggered a significant uptick in demand for its native token, CAKE, whose value has rocketed more than 50% in the past 24 hours. At press time, the altcoin trades at its year-to-date high of $3.04.

The double-digit price rally is accompanied by a corresponding spike in CAKE’s trading volume in the spot markets. At press time, this totals $1.04 billion, marking a 311% increase.

CAKE Price and Trading Volume. Source: Santiment

When an asset’s price climbs alongside a surge in its trading volume, it indicates strong market demand and heightened investor interest. This increased volume suggests that CAKE’s price movement is backed by significant buying activity, making the rally more sustainable.

Another indicator of the rise in CAKE’s demand over the past 24 hours is its open interest. It has climbed by 61% during that period to a three-month high of $61 million at press time.

CAKE Open Interest. Source: Coinglass

An asset’s open interest measures the total number of outstanding derivative contracts, such as futures or options, that have not been settled. When it rises like this, it signals increased market participation and capital inflows, often indicating stronger conviction in the asset’s current trend.

CAKE Price Prediction: Can Bulls Push It Past $3.63 Resistance?

On the daily chart, CAKE rests above its Super Trend indicator, which forms dynamic support below its price at $1.95.

This momentum indicator uses an asset’s price action and volatility to determine its overall market direction. When an asset’s price is above the green line of its Super Trend indicator, it signals a bullish trend, suggesting that buyers are in control. This positioning acts as dynamic support, indicating the potential for upward movement if the trend holds.

If CAKE’s demand soars further, its price could break above the resistance formed at $3.63. A successful breach of this level could propel the token to its March 2024 peak of $5.24.

CAKE Price Analysis. Source: TradingView

However, a resurgence in profit-taking activity will invalidate this bullish projection. In that case, CAKE’s value could plunge below $3 to trade at $2.90.