The CAKE token continues to reduce its supply, confirming a deflationary trend that started in 2023. Moreover, amid this trend, the token's price is reaching key resistance levels.
Supply Dynamics and Deflationary Trend
CAKE's transition from an inflationary to a deflationary asset is clearly depicted in the supply chart. The supply peaked in late 2023, followed by a consistent decline continuing through 2024 and 2025. During this period, the total supply decreased by 18,777,792 CAKE, which is a 4.8% reduction. These changes are reflected through periodic oscillations:
CAKE Price Technical Analysis
Alongside the supply contraction, CAKE’s price is approaching a critical technical level. In recent months, the token has faced multiple rejections at a descending trendline. Currently, CAKE is testing the support/resistance zone at $2.76, marking a 55% gain in the last week.
Potential Trend Reversal and Prospects
If CAKE’s price successfully breaks above the descending wedge, it could confirm a trend reversal with subsequent resistance levels at $3.70 and $4.50. If sustained buying pressure ensues, the token might target higher levels between $7.00 and $11.00.
CAKE’s supply reduction lays the groundwork for a potential bullish market trend. Technical analysis suggests a possible trend reversal if the price overcomes key resistance levels. Investors and observers should monitor developments closely to assess the token's further dynamics.
