PancakeSwap [CAKE] has surged by 46% in the last seven days, while Bitcoin [BTC] has seen a 1.48% decline in its value. The standout performance of PancakeSwap could be viewed as a positive development for investors and traders.
An analysis of correlations has shown that CAKE displays a minimal correlation to major assets like Bitcoin and Ethereum [ETH]. Interestingly, it exhibits a correlation of +0.79 with Litecoin [LTC], a digital asset that recently broke out of a two-year range and established $110 as a key support level without a clear long-term trend.
Other positive indicators for PancakeSwap
Since March 2024, the number of active addresses on the platform has seen a decrease, and this figure has not been recovered ever since. However, in the last month, the 24-hour trading volume on the decentralized exchange has shown a consistent increase, reaching $6.34 billion on February 13.
Simultaneously, the number of transactions conducted over a 24-hour period has also witnessed a rise, indicating a surge in the platform’s usage.
The recent rapid price appreciation over the past fortnight serves as another strong signal of confidence in CAKE. The rise in CAKE’s value demonstrated notable buying volume. Examining the global in/out of the money chart, it was evident that the $2.16-$2.47 range acted as a support zone.
The considerable volume of CAKE purchases in this price bracket implies that any dip below this zone would face resistance, particularly as a substantial number of holders would be at a loss.
The daily price movements indicated a bullish shift in the market structure once the price surpassed the $2.01 mark. Subsequently, it went on to break the series of lower lows that had been forming since the beginning of 2025.
Lastly, the Fibonacci retracement levels illustrated that the previous downward swing was almost entirely retraced. Looking ahead, the next bullish targets for CAKE would be at $3.35 and $4.05 levels.