CAKE Price Is Exploding Today: Here’s Why

Updated 16 minutes ago by · 2 mins read

PancakeSwap’s CAKE token has surged nearly 50% this month following the launch of CAKE.PAD, a new token-access platform that permanently burns CAKE fees.

Pancakeswap’s native token, CAKE, is on a powerful bullish run. The coin soared over 7% in the past 24 hours, with trading volume spiking by nearly 87%. Over the past week alone, CAKE has surged almost 40%, extending its monthly gains to an impressive 50%, according to CoinMarketCap.

The explosive move comes as the decentralized exchange launched its most anticipated feature yet, CAKE.PAD, a streamlined early-access token launch platform designed to revolutionize how users participate in new project offerings.

What’s Driving the CAKE Price Surge?

CAKE.PAD, PancakeSwap’s upgraded version of its Initial Farm Offering (IFO), introduces a new system that simplifies the process of joining early token sales. Users only need to hold and commit CAKE during an event.

Unlike the old IFO model, there’s no staking pool, no lock-up period, and no complicated requirements. Once the event ends, participants can instantly claim their new tokens.

Strong Deflationary Mechanism

The move makes early token access more inclusive, also introducing a powerful deflationary mechanism.

All CAKE fees collected through CAKE.PAD will be permanently burned, reducing the circulating supply and strengthening CAKE’s long-term value. Every participation contributes directly to scarcity.

Moreover, users can now participate in multiple events simultaneously, with no limits on CAKE commitments. The platform will also introduce a tiered subscription tax system during oversubscribed events to maintain fairness.

CAKE Price Analysis: Bulls in Control

The daily CAKE chart shows a strong uptrend forming within a rising parallel channel, marked by consistent higher highs and higher lows since early 2024. The token recently tested the upper boundary of this channel around $3.80–$4.00, before facing slight resistance.

CAKE price inside a rising parallel channel | Source: TradingView

Bollinger Bands are expanding as price holds above the middle band near $3.00, confirming sustained buying pressure. Meanwhile, the RSI (Relative Strength Index) stands at 67, just below overbought territory.

Additionally, the MACD indicator has recently flipped bullish, with the MACD line crossing above the signal line and the histogram bars rising steadily. The Chaikin Money Flow (CMF) reading of 0.13 indicates consistent capital inflows, a further positive sign for the bulls.

If sellers step in or Bitcoin corrects, CAKE could retrace toward the support zone at $2.70. However, it is important to note that a breakout above this range could accelerate momentum toward $4.30–$4.50, crowning CAKE as the next crypto to explode.

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