Key Takeaways
- CAKE rose 4.5%, approaching the psychological $2.00 mark.
- Derivative data corroborate the rebound as funding rates turn positive.
CAKE Derivative Data Support a Bullish Move
CAKE, the native token of the PancakeSwap exchange, gained 4.5% over the past 24 hours and is now trading near $2.00.
This uptick coincides with Coinglass derivative metrics showing that fewer investors are betting on further CAKE price declines than those expecting a rise.
A positive funding rate indicates a net bullish bias among traders. On Wednesday the indicator turned positive and currently stands at 0.0046%, suggesting longs are paying shorts.
Additionally, Coinglass’s long-to-short ratio for CAKE reads 1.11 on Thursday, approaching a one-month high. A value above one signals an increasing number of traders are positioned for gains.
This bullish setup follows PancakeSwap’s recent announcement that its community approved a proposal to cap CAKE’s maximum supply.
The cap was lowered from 450 million to 400 million tokens, and ongoing token burns have consistently outpaced new issuance.
CAKE Could Push Toward $2.10
The CAKE/USDT 4-hour chart remains within a bearish structure despite the recent 4.5% gain over the last day.
CAKE was rejected at the weekly resistance near $2.13 on Saturday and fell about 10% earlier this week. It rebounded on Wednesday and is now once again testing the $2.00 area.
If the recovery continues, CAKE could climb toward the 50-period exponential moving average (EMA) around $2.06.
The 4-hour Relative Strength Index (RSI) stands at 46 and is moving toward the neutral 50 level, indicating weakening bearish momentum. For the rally to sustain, the RSI needs to break above neutral territory.
Conversely, a daily candle close below support at $1.88 could extend the correction toward the next support zone near $1.79.