- PancakeSwap ($CAKE) approaches a 3.5-year trendline with reduced bearish momentum and signs of accumulation.
- TVL stands at $2.55 billion, more than double its market cap, suggesting strong fundamental support.
- Analysts see a potential breakout above $3.50–$3.60 if volume returns, with targets at $5 and $7.
PancakeSwap ($CAKE) is approaching a long-term descending resistance that has capped price growth for nearly three and a half years. The weekly chart shows repeated rejections, but recent activity suggests momentum is building for a possible breakout.
Long-Term Resistance and Price Structure
CAKE’s weekly chart displays a descending trendline acting as resistance since 2021. It has rejected bullish rallies at four key points, signaling strong seller control at each attempt.
The current setup marks the fourth test of this level, but the structure is shifting. Unlike prior rejections, recent corrections have been shallow, reducing downward pressure. This pattern often signals accumulation by larger market participants.
BitcoinSensus tweeted that CAKE is “ready to break a 3 year resistance line to the upside.” The statement aligns with visible tightening of price action beneath the resistance.
Current Market Data and Supply Metrics
CAKE trades at $3.35, reflecting a daily decline of 1.46%. The market capitalization is $1.15 billion, with a fully diluted valuation of $1.5 billion.
Circulating supply stands at 344.5 million CAKE out of a maximum 450 million. Over 76% of supply is released, lowering dilution concerns compared to other DeFi projects. This controlled supply adds stability to valuation assessments.
However, trading volume has dropped sharply to $243.7 million, down over 62% in 24 hours. This decline suggests reduced short-term participation, though volume relative to market cap remains healthy at 21.16%.
Fundamental Strength and Breakout Scenarios
PancakeSwap continues to secure strong fundamentals with a TVL of $2.55 billion, more than double its market capitalization. The Market Cap/TVL ratio of 0.45 positions CAKE as undervalued against locked liquidity.
If CAKE closes decisively above $3.50–$3.60 with volume confirmation, analysts expect upside targets near $5 and $7. This would mark a structural break of the long-standing trendline.
Conversely, failure at this level could trigger another rejection. A retrace toward $3.00 or even $2.50 remains possible. Yet, strong TVL metrics suggest downside may remain limited compared to earlier sell-offs.
