Over the course of the last week, PancakeSwap [CAKE] has surged by 46%, while Bitcoin [BTC] has experienced a decrease of 1.48% in its value. This notable performance by PancakeSwap is likely to instill confidence among both investors and traders.
An analysis of correlations has shown that CAKE exhibits almost no correlation with major assets like Bitcoin and Ethereum [ETH]. Interestingly, it does share a correlation of +0.79 with Litecoin [LTC], a cryptocurrency that has recently broken out of a two-year trading range, establishing $110 as a support level and currently lacking a clear long-term trend.
Other Positive Indicators for PancakeSwap
Despite a decline in the number of active addresses since March 2024, PancakeSwap has recorded a steady rise in the 24-hour trading volume on the platform, reaching $6.34 billion on 13 February. Additionally, the number of transactions within a 24-hour period has shown an upward trend, signaling increased usage of the decentralized exchange.
The rapid price growth observed in the last two weeks serves as a strong indicator of market confidence. The surge in CAKE’s price has been supported by significant buying volume. Analysis of the global in/out of the money chart suggests that the $2.16-$2.47 range serves as a critical support zone.
Notably, the substantial volume of CAKE purchases in this price range indicates that a drop below this level would be challenging, particularly as a large portion of holders would find themselves at a loss.
The daily price movements revealed a bullish shift in market structure when prices surpassed the $2.01 mark. Subsequently, CAKE has successfully broken the pattern of forming lower lows observed since the beginning of 2025.
Furthermore, Fibonacci retracement levels indicate that almost the entire downward swing has been retraced. Looking ahead, the next bullish targets for CAKE are identified at the $3.35 and $4.05 levels.