After retesting and rebounding from a crucial support level of around $1.55 in the past few weeks, PancakeSwap (CAKE), the largest decentralized exchange (DEX) on the BNB chain, has signaled a shift to bullish sentiment. The mid-cap altcoin, with a fully diluted valuation of about $794 million and a 24-hour average trading volume of around $239 million, pumped more than 16 percent in the last 24 hours to trade around $2.16 on Monday, March 17, during the mid-European session.
Top Reasons Why CAKE Price Surged Today
The notable rise of CAKE price in the past 24 hours is majorly attributed to the rising on-chain activity of the PancakeSwap DEX. In the past 24 hours, PancakeSwap was the leading DEX by the overall volume traded of about $1.24 billion. In comparison, Solana’s Raydium recorded a 24-hour volume of about $418 million while Ethereum’s Uniswap (UNI) recorded a net daily volume of about $1 billion.
As Coinpedia mentioned, the notable demand for the Mubarak (MUBARAK) memecoin has helped increase the overall on-chain activity on the PancakeSwap DEX. Moreover, MUBARAK price has surged over 2000 percent in the past four days to trade at about $0.13 at the time of this writing.
According to market data from Defillama, PancakeSwap DEX has seen its total value locked (TVL) surge to about $1.62 billion. With over $160 million in staked CAKE, PancakeSwap has grown to a reputable DeFi platform.
PancakeSwap Price Forecast
From a technical analysis standpoint, CAKE price has been forming a macro market reversal pattern in the past year. The reversal pattern is characterized by a potential inverted head and shoulders (H&S) formation, coupled with a bullish divergence of the weekly Relative Strength Index (RSI).
The altcoin has established a robust support level above $1.55, which has been confirmed after a consistent close above in the past two weeks. In case of bullish sentiment ahead, CAKE’s price is aiming for $5 in the near term, which coincides with the 1.618 daily Fibonacci Extension.
