After retesting the crucial support level of around $1.55 in recent weeks, PancakeSwap (CAKE) is showing bullish sentiment. CAKE's price surged over 16% in the last 24 hours, reaching $2.16 during the mid-European session on Monday, March 17.
Reasons for CAKE Price Surge
The recent notable rise in CAKE's price is primarily due to increased on-chain activity on the PancakeSwap DEX. In the past 24 hours, PancakeSwap led the DEX market by overall trading volume, reaching about $1.24 billion. In comparison, Solana's Raydium recorded approximately $418 million, while Ethereum's Uniswap (UNI) had about $1 billion. Additionally, the demand for the Mubarak (MUBARAK) memecoin has boosted on-chain activity as its price surged over 2000% in the past four days, reaching around $0.13.
PancakeSwap On-Chain Analysis
According to market data from Defillama, the total value locked (TVL) in PancakeSwap DEX surged to about $1.62 billion. With over $160 million in staked CAKE, PancakeSwap has grown into a reputable DeFi platform.
PancakeSwap Price Forecast
From a technical analysis standpoint, CAKE's price has been forming a macro market reversal pattern over the past year. This pattern is characterized by a potential inverted head and shoulders formation, coupled with a bullish divergence in the weekly Relative Strength Index (RSI). The altcoin has established a robust support level above $1.55. If bullish sentiment prevails, CAKE's price is aiming for $5 in the near term, coinciding with the 1.618 daily Fibonacci Extension.
PancakeSwap (CAKE) shows an impressive rise after testing a key support level. Increased platform activity and technical indicators suggest potential for further growth in the near future.
