- CAKE surged past $2.65 resistance with $23.82M volume, reaching $2.94 and closing above the upper Bollinger Band at $2.635.
- IntoTheBlock data shows 59% of holders are in profit, with 58% holding CAKE for over a year and whale concentration at 81%.
- If CAKE breaks above $3.00, it may reach $3.15–$3.20; failure to hold $2.65 could lead to a drop to $2.50 or $2.374 support.
PancakeSwap’s native token CAKE has seen renewed upward momentum following the introduction of the Caila (CA) Syrup Pool. This allows users to stake CAKE tokens and earn CA, attracting higher interest within the DeFi community.
Over the past 24 hours, the CA token has surged by 106%, with a trading volume of $45.1 million. At press time, CAKE was trading at $2.81, its highest daily close since mid April. The price spike also pushed the asset above technical levels.
Technical Breakout Pushes CAKE Beyond April Levels
CAKE broke past the $2.65 resistance level, with strong buyer volume recorded at 23.82 million. This move pushed the price to a daily high of $2.94, pushing the asset outside the upper Bollinger Band, which is at $2.635.
The middle Bollinger Band, or 20-day SMA, is at $2.374. Such a breakout above the band often suggests increasing volatility. Although this indicates strong bullish momentum, historical data suggests overextensions like this can lead to brief pullbacks.
The MVRV Z Score, used to assess market valuation, spiked to 31.031. While this level is unusually high for crypto assets, it shows the divergence between CAKE’s market value and its realized value since April. This sharp upward trend raises the likelihood of temporary corrections.
On-Chain Metrics Suggest Bullish Holder Sentiment
Data from IntoTheBlock shows that 59% of CAKE holders are currently in profit, while 29% are at a loss. Additionally, 58% of holders have kept their tokens for over one year, showing strong long term conviction.
Only 4% have held for less than a month. These figures show low short term speculation, despite recent price movements. CAKE maintains a 0.87 price correlation with Bitcoin, making it sensitive to broader market trends.
Concentration by large holders remains high at 81%, indicating whales still control a significant portion of supply. In the past seven days, large transaction volumes are at $201.34k, showing moderate but active whale activity in the market.
Psychological Barriers May Influence Short Term Moves
With CAKE now trading above previous resistance, attention turns to the psychological level of $3.00. A confirmed breakout above this point could push the token toward $3.20. However, if CAKE fails to hold above $2.65, downside movement toward $2.50 remains possible. The 20 day SMA at $2.374 may act as a secondary support if selling intensifies.
Potential Price Ranges for May 28
On the upside, if volume sustains and breaks above $3.00, CAKE could reach $3.15 to $3.20. However, if buyers fail to hold $2.65, price may retrace to $2.50 or bounce near $2.374 support.
Overall, PancakeSwap’s CAKE token remains in a strong technical position following key developments and price acceleration. The sharp volume increase, combined with on-chain metrics, places the $3.00 barrier as a focus area. As price tests this psychological level, trading volume and investor response will determine CAKE’s direction in the short term.
