Decentralized finance (DeFi) token CAKE has emerged as today’s top gainer, defying the broader market’s pullback in trading activity. The multi-chain token, native to the BNB Chain, has posted impressive gains over the past week, fueled by the recent surge in user demand on the network.
With technical and on-chain indicators pointing to sustained demand, CAKE could be gearing up for an extended rally.
CAKE Extends Rally as BNB Chain Activity Soars
CAKE’s rally follows a surge in user activity on the BNB Chain over the past month, which has driven up the values of several crypto assets native to the Layer-1 (L1) blockchain.
This uptick in user demand is reflected by the chain’s rising daily transaction count and decentralized exchange (DEX) trading volumes. According to Artemis, the total number of transactions recorded on the BNB Chain over the past month has totaled 19 million, climbing by 41% during that period.
For token TA and market updates: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
During that period, the volume of transactions completed on DEXes housed on BNB has rocketed 139%.
This renewed on-chain activity has directly translated into stronger demand for CAKE, being the native token of the largest DEX by trading volume operating on the BNB Chain, PancakeSwap.
Moreover, the recent launch of CAKEPAD, a new multi-chain launchpad designed to give investors early access to emerging tokens, has further boosted CAKE’s attractiveness among investors.
Together, these factors have triggered an uptick in CAKE’s demand, driven up investor optimism, with technical indicators pointing to more gains.
Is This Rally Built to Last?
CAKE’s double-digit surge over the past day is accompanied by a rise in its daily trading volume. As of this writing, CAKE’s 24-hour trading volume sits at $1.71 billion, up more than 60% in the past day.
When both price and trading volume spike simultaneously, it indicates conviction behind the upward move. This means that CAKE buyers are actively accumulating the asset, and its price is not just reacting to short-term volatility.
Furthermore, the setup of CAKE’s Chaikin Money Flow confirms the bullish bias among spot market participants. As of this writing, this momentum indicator is at 0.31 and remains in an uptrend.
The CMF indicator measures how money flows into and out of an asset. When it returns a value above the zero line like this, market participants favor accumulation over distribution, hinting at further CAKE rallies.
Will Bulls Defend $4.26 or Cede Ground to Sellers?
At press time, CAKE trades at a 10-month high of $4.34, resting above the support floor formed at $4.26. If demand remains steady and this price floor strengthens, it could push CAKE’s value toward $4.66.
A successful breach of this barrier could open the door for a rally toward $5.24, a high last reached in March 2024.
On the other hand, if demand stalls and sellers regain control, the support at $4.26 could give way, leading to a deeper decline toward $3.66.
The post PancakeSwap (CAKE) Hits 10-Month High as It Rides BNB Chain Momentum appeared first on BeInCrypto.
