On Tuesday, March 18th, the crypto market witnessed a slight downtick along with Bitcoin price reverting from $85,000. Defying this broader market correction, the PancakeSwap price recorded an over 10% surge as it emerged as the dominant force in decentralized exchange (DEX) revenue, and witnessed a massive spike in its futures open interest. Is the bullish momentum sufficient to hit $5?
Key Highlights:
- The Pancakeswap price is 13% short from a major breakout of $3 resistance.
- A double-bottom formation set the CAKE price rally for a 68% surge.
- CAKE Futures Open Interest rose by 203% in 24 hours, indicating growing trader interest.
PancakeSwap Tops 24-Hour DEX Fees, Outpacing Uniswap and Meteora
PancakeSwap has emerged as the leader among decentralized exchanges (DEXs) in generating fees over the past 24 hours. The platform reported fees totaling $5.49 million, significantly outperforming its closest competitor, Uniswap, which generated $1.8 million. This marks PancakeSwap’s fees as roughly three times higher than Uniswap’s, and nearly five times greater than Meteora, which secured third place with $1.15 million.
PancakeSwap’s remarkable performance underscores its growing dominance in the decentralized finance (DeFi) sector, further highlighting investor and user confidence in its ecosystem.
In addition, the CAKE Futures Open Interest has skyrocketed from $30.8M to $93.3M accounting for 203% growth. Generally, a surge in open interest suggests a growing interest from traders in CAKE futures, in anticipation of a potential price surge.
However, a major surge in OI value has historically preceded by notable market tops indicating that investors must be cautious at overhead resistance.
Double-Bottom Formation Signals Potential 68% Rally
Defying the broader market uncertainty, the CAKE token value has doubled over the week as its price records a leap from $1.38 low to $2.64. Consecutively, the asset market cap surged to $773.8M.
The sudden surge pierced its way through key daily EMAs (20, 50, 100, and 200) and shifted their trajectory upward, indicating a restoring bullish sentiment in the market. Moreover, the daily chart reveals the upswing as the formation of a double-bottom reversal pattern.
The W-shaped reversal setup shows high demand pressure from bottom support, and bolsters buyers for a sharp surge beyond key neckline resistance. If Pancakeswap price breaches the $3 resistance with a daily candle closing, the potential recovery extended 68% up to hit the $5 mark.
Conversely, if the altcoin shows intact supply at $3 with a long-wick rejection as shown on February 13th, the price could revert sharply.
Also Read: Ethereum MVRV Ratio Suggest a Rebound May Be Imminent — Is $2,500 ETH Close?
