PancakeSwap (CAKE) is showing renewed strength, trading above $1.60 on Thursday after bouncing from that level the day before. A combination of rising derivatives activity and constructive price action suggests the token could extend its recent rally — though key resistance levels remain in play.
Derivatives flow confirms fresh demand
- Futures Open Interest (OI) has climbed to elevated levels, with CoinGlass reporting OI at about $32.48 million on Tuesday and roughly $32.28 million on Thursday — levels not seen since March 17. The steady OI reading points to new capital entering CAKE futures markets, which can help sustain upward momentum.
- Funding rates have flipped positive: CoinGlass’ OI-weighted funding rate for CAKE turned positive on Wednesday and was 0.0056% on Thursday. A positive funding rate means longs are paying shorts, a typical sign of bullish positioning in the market.
Technical picture: momentum in place, but overhead barriers loom
- Short-term trend: CAKE’s 4-hour chart looks constructive. At press time it trades around $1.60 and remains above the 50-day and 100-day EMAs ($1.46 and $1.57), supporting a bullish bias.
- Medium- to long-term: CAKE is still below the 200-day EMA at $1.81, which marks a significant resistance and the upper boundary of the broader corrective structure.
- Momentum indicators: Daily RSI sits near 64, indicating firm upside momentum but approaching overbought territory where consolidation becomes more likely. The MACD remains positive, reinforcing the short-term bullish outlook.
Key levels to watch
- Immediate resistance: $1.67 (50% retracement of the latest swing)
- Near-term upside targets: $1.78 (61.8% Fibonacci), $1.79 (horizontal resistance), and $1.81 (200-day EMA)
- Support levels: $1.57 (100-day EMA), $1.55 (38.2% retracement), deeper pullbacks to $1.46 (50-day EMA), $1.40 (23.6% retracement), and structural support around $1.28
Bottom line
Derivatives activity and technical momentum are aligned in favor of further upside for CAKE in the near term, but traders should monitor the 200-day EMA and RSI for signs of resistance or overheating. A failure to hold the 100-day EMA would open the door to deeper pullbacks.
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