On Friday, March 21st, the crypto market witnessed low volatility trading, evidenced by the neutral candle formation in Bitcoin. The overhead selling pressure in these top assets continues to prolong the correction trend in the altcoin market. However, the PancakeSwap token price records a sudden 17% surge following its growth in DEX revenues and trading volume. Is the CAKE price ready to break out to $5?
Key Highlights:
- The PancakeSwap price back above the daily Exponential Moving Averages (20, 50, 100, and 200) indicates the restoring bullish sentiment in this asset.
- A potential breakout from double-bottom patterns sets Cake Token for a 68% upswing.
- PancakeSwap leads the DEX ecosystem with a 24-hour trading volume of $1.99 billion.
PancakeSwap Tops DEX Rankings with Nearly $2B Trading Volume
PancakeSwap has emerged as the top-performing decentralized exchange (DEX), recording a staggering $1.99 billion in 24-hour trading volume. This places it at the helm of the DEX ecosystem, showcasing its dominance as it leads the market during a period of volatility.
Earlier this week, NameCoinNews also highlighted that PancakeSwap dominates DEX revenue as it reported a 24-hour fee of $5.49 million, significantly outperforming its close competitors like Uniswap, Raydium, Meteora, Orca, etc.PancakeSwap’s stellar performance has doubled the value of its native CAKE token, which has surged from $1.37 to $2.75 in the past two weeks. Consequently, the asset market cap surged to $809.2 million.
Double-Bottom Formation Signals Rally to $5
In the daily time frame chart, the Pancakeswap coin shows the formation of a double bottom pattern at the base support of $1.4. Generally, the chart setup shows two price reversals in a ‘W’ shape, indicating a high demand pressure from the bottom.
Currently trading at $2.67, the CAKE price is 10% short from an upside breakout of $3-$2.95 neckline resistance. A potential bullish crossover between the fast-moving EMAs (20, 50, 100, and 200) should bolster the aforementioned breakout and pave the way for higher recovery.
Theoretically, the post-breakout rally covers a distance equal to the spread between the bottom support to the neckline. If the pattern holds, this altcoin could rally 62% and challenge major resistance at the $4.8-$5 region.
Conversely, if the sellers continue to defend $3 psychologically, the PancakeSwap price could prolong the current consolidation till March end.
Also Read: Illegal Exchanges Face Sanctions in South Korea’s Crypto Crackdown
