CAKE outperforms BTC, ETH: Will the bullish trend continue?

CAKE, the native token of the decentralized exchange PancakeSwap, is standing out as a rare bright spot in the context of the overall crypto market which is trending weaker. In the past 24 hours, CAKE has grown by 3%, outperforming the top two assets, Bitcoin and Ethereum, both of which have fallen by about 1% during the same period.

Price increase motivation from trading volume and technical indicators

In the context of the overall market being somewhat subdued over the past week, CAKE has still recorded an impressive increase. Currently, this token is being traded around 2.48 USD, corresponding to a 9% increase since May 31.

This price surge has continued to be maintained up to the present moment, as the trading volume of CAKE has surged by 88% in the past 24 hours. The simultaneous growth in price and liquidity demonstrates strong interest from the investor community, proving the increasing demand for this DeFi asset.

Typically, when the price rises alongside trading volume, it is a clear sign of strong buying power and the consolidation of an upward trend. This combination reflects the growing confidence of investors in the potential of CAKE, while also opening up expectations for the continuation of the upward momentum in the near future.

In addition, the technical indicators also agree with this positive outlook. For instance, the BBTrend indicator on the daily timeframe chart currently registers at 12.76 and has maintained a series of continuous green bars since May 9.

! BBTrend by CAKE | Source: TradingViewThe BBTrend indicator assesses the strength and direction of the trend based on the expansion and contraction of the Bollinger Bands. When BBTrend displays red bars (giá âm), the asset price usually closes close to the lower Bollinger band, reflecting strong selling pressure and warning of a possible bearish correction. In contrast, in a positive state like CAKE today, BBTrend signals a stable and sustainable uptrend.

The BBTrend level of 12.76 indicates that bullish momentum is becoming increasingly strong, affirming investor confidence and opening up the possibility that CAKE will continue its upward trend in the near future.

Resistance level 2.81 USD: Next target?

CAKE's (RSI) relative strength index is increasing, further reinforcing the positive outlook for the token. As of now, the RSI is at 54.75 and continues its uptrend.

RSI is a technical indicator that measures the overbought or oversold conditions of an asset, with a scale ranging from 0 to 100. When the RSI exceeds the threshold of 70, the asset is considered to be overbought and may experience a price correction. Conversely, when the RSI falls below 30, the asset is deemed to be oversold and may recover.

At the current level, the RSI of CAKE reflects a stable accumulation process from investors, opening up opportunities for the token price to continue growing in the near future.

CAKE price chart 1 day | Source: TradingViewIf market sentiment along with liquidity remains stable, CAKE is likely to target the next goal of 2.81 USD.

However, in the case of a decrease in demand, this token may adjust below the important support level at 2.41 USD, and may even drop deep down to the level of 2.25 USD.

Emma