What to know:
- The CAKE price is showing a potential bullish reversal after forming a double-bottom near the $1.20–$1.30 support zone.
- A breakout above the $1.80 neckline could confirm the pattern and open the path toward the $2.30 target.
- PancakeSwap recorded 762,000 CAKE in product burns, worth approximately $1.32 million.
PancakeSwap (CAKE) is showing signs of a bullish reversal after forming a double-bottom pattern and defending key support. A breakout above resistance could strengthen the upside outlook for the CAKE price, while rising burn activity may reduce supply and provide additional support for CAKE’s longer-term price potential.
At the time of writing, CAKE is trading at $1.73 with a 24-hour trading volume of $26.26 million and a market capitalization of $555.33 million. Despite the 1.27% loss over the last 24 hours, the CAKE price structure and token burns point to a bullish reversal ahead.
Source: CoinMarketCap
Also Read: PancakeSwap (CAKE) Price Breakout Signals Potential Rally Toward $2.40
CAKE Price Eyes $2.30 on Double-Bottom Breakout
According to the crypto analyst Crypto With Gopal, the CAKE price is showing a potential bullish reversal after forming a double-bottom pattern around the $1.20–$1.30 support zone.
Buyers have defended this area twice, indicating stronger demand and weakening selling pressure. The formation suggests CAKE may be building a base, with bulls now attempting to push the price toward the key $1.80 neckline.
Source: Crypto With Gopal’s X Post
Breaking out above the neckline at $1.80 will be a confirmation of the double bottom pattern, thus cementing the bullish view on the CAKE price.
A faster move to the upside following this breakout will take us to $2.30 as the next key level to watch out for. In case of a failure to break out above $1.80, $1.20-$1.30 remains the key support.
CAKE Burns Surge 37% as AMM V3 Leads
The data from PancakeSwap further highlighted that the platform generated a CAKE minting loss of -609,000 tokens, valued at about $1.05 million, while the total burns on products came to 762,000 CAKE, estimated at $1.32 million.
There is a 37% rise in burns weekly, indicating a higher rate of reduction in supply within the ecosystem. If this continues, it will be more favorable for the price performance of CAKE.
AMM V3 was the main contributor to the burning process, having burnt 489,000 CAKE worth $846,000, recording a massive 90% growth. The second main contributor was AMM V2, which burnt 230,000 CAKE, worth $397,000, a fall of 8%.
AMM Infinity burnt 12,300 CAKE worth $21,000. Other products, including Prediction and Perpetual, added 31,000 CAKE valued at $53,000, marking a 9% increase in their combined burns.
Despite the bullish price predictions and token burns, the CAKE price is moving in a downward direction. However, the general trend in the crypto market is improving, and the CAKE price could soon witness a breakout if conditions remain favorable.
What Happens Next?
The CAKE price may experience volatility while the traders wait for the price to break above the $1.80 neckline level. The breakout above the resistance level will help boost the bullish trend and help push the price towards $2.30.
On the other hand, continuous token burns will give strength to the long-term outlook of the cryptocurrency.
Also Read: CAKE Price Prediction: CAKE Eyes $50 as Bullish Reversal Takes Shape
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