Key points
- CAKE has risen 4.5% and is nearing a psychological price level.
- Derivatives data support the recovery as funding rates turn positive.
Derivative data for CAKE support a bullish move
CAKE, the native token of the PancakeSwap exchange, has gained about 4.5% over the past 24 hours and is currently approaching the $2.00 mark.
This uptick is reinforced by Coinglass open-interest-weighted funding rate data, which indicate fewer traders expect CAKE’s price to fall than expect it to rise.
A positive funding rate implies there are more bullish positions than bearish ones on CAKE. That metric flipped on Wednesday and now reads 0.0046%, meaning longs are paying shorts.
Additionally, Coinglass shows CAKE’s long/short ratio reached 1.11 on Thursday, approaching a one-month high. A ratio above 1 signals more traders are betting on CAKE to climb.
This bullish backdrop emerged after PancakeSwap announced earlier this week that its community approved a proposal to reduce CAKE’s maximum supply.
The maximum supply was trimmed from 450 million to 400 million, and token burns continue to outpace emissions.
CAKE could climb toward $2.10
The 4-hour chart for CAKE/USDT remains technically bearish but efficient, even as CAKE’s value rose by 4.5% in the last day.
CAKE price bounced off weekly resistance at $2.13 on Saturday and fell roughly 10% earlier this week. It recovered on Wednesday and is once again approaching the $2.00 level.
If CAKE can sustain its recovery, it may push toward the 50-period exponential moving average (EMA) on the 4-hour chart, around $2.06.
The 4-hour Relative Strength Index (RSI) sits near 46 and is rising toward the neutral 50 level, suggesting bearish momentum is easing. For the recovery to hold, the RSI needs to climb above neutral.
Conversely, if CAKE’s daily candle closes below the $1.88 support level, a deeper pullback could extend toward the $1.79 support zone.