** PancakeSwap (CAKE) Surges Past $2.90 as Record Volume Drives Bullish Momentum

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Quick Take

• CAKE currently trading at $2.92 (+3.99% in 24h)
• PancakeSwap’s RSI at 63.34 indicates building bullish momentum
• Record $58.7 billion August trading volume and token supply reduction proposal driving rally

What’s Driving PancakeSwap Price Today?

The CAKE price rally accelerated significantly on September 20, when PancakeSwap broke above the critical $2.75 resistance level, reaching $2.79 amid an 8% surge. This breakthrough came as traders responded enthusiastically to PancakeSwap’s record-breaking $58.7 billion trading volume achieved in August 2025, marking the highest monthly volume in the platform’s history.

Adding fuel to the bullish sentiment, a community proposal to reduce CAKE’s total token supply to 450 million tokens has gained traction among holders. This potential supply reduction mechanism could create additional upward pressure on CAKE price by improving the token’s scarcity dynamics.

Despite the current bullish momentum, earlier this week painted a different picture. On September 15, CAKE faced selling pressure and tested key support at $2.46, declining 3.08% even as news of the record trading volume emerged. The initial negative reaction demonstrated how technical factors can temporarily override fundamental catalysts in cryptocurrency markets.

The week’s price action showcases the volatile nature of CAKE/USDT trading, with the token experiencing both significant declines and impressive recoveries within a short timeframe.

CAKE Technical Analysis: Strong Bullish Signals Emerge

PancakeSwap technical analysis reveals multiple indicators aligning for continued upward momentum. CAKE’s RSI currently sits at 63.34, positioned in the neutral-to-bullish zone with room for further advancement before reaching overbought conditions. This RSI level suggests sustained buying interest without immediate reversal pressure.

The MACD indicator reinforces the bullish outlook, with the MACD line at 0.0745 significantly above the signal line at 0.0153. The positive MACD histogram reading of 0.0591 confirms strengthening bullish momentum for PancakeSwap, indicating buyers are gaining control over market direction.

Moving averages paint an encouraging picture for CAKE holders. The token trades well above its 7-day SMA at $2.73 and has decisively broken through the 20-day SMA resistance at $2.56. More importantly, CAKE maintains its position above the critical 200-day SMA at $2.34, confirming the long-term uptrend remains intact.

PancakeSwap’s position within the Bollinger Bands provides additional insight. With a %B reading of 0.9974, CAKE is trading extremely close to the upper band at $2.92, suggesting strong momentum but also potential short-term resistance.

PancakeSwap Price Levels: Key Support and Resistance

Based on Binance spot market data, PancakeSwap support levels have shifted higher following this week’s rally. The immediate support now sits at $2.33, representing the previous resistance turned support level. Should CAKE experience a pullback, this level coincides with the 200-day moving average, making it a critical area for bulls to defend.

CAKE resistance faces its most significant test at $3.15, which represents both the 24-hour high and the immediate resistance level. This price point also sits close to PancakeSwap’s 52-week high of $3.09, making it a psychologically important barrier. A decisive break above $3.15 could trigger additional buying interest and potentially drive CAKE toward new yearly highs.

The current pivot point at $2.94 serves as a dynamic support-resistance level. As long as CAKE maintains trading above this level, the short-term trend remains bullish. However, a breakdown below the pivot could signal profit-taking and a potential retest of lower support levels.

Should You Buy CAKE Now? Risk-Reward Analysis

For aggressive traders, the current CAKE price action presents an intriguing opportunity, albeit with elevated risk due to the token’s proximity to resistance levels. The combination of record trading volume, potential supply reduction, and strong technical momentum creates a favorable environment for continued gains.

Conservative investors might consider waiting for a pullback to the $2.56-$2.63 range, where the 20-day and 50-day moving averages could provide support. This approach offers better risk-reward ratios while still capitalizing on the overall bullish trend.

Day traders should monitor the $3.15 resistance level closely. A break above this level with strong volume could signal continuation toward $3.30-$3.50. However, rejection at this resistance might trigger a pullback to $2.70-$2.75 support zone.

Risk management remains crucial at current levels. Stop-loss orders below $2.33 could protect against significant downside, while profit-taking near $3.15 might be prudent for short-term positions.

Conclusion

PancakeSwap’s impressive rally to $2.92 reflects both fundamental strength and technical momentum converging favorably. The record August trading volume demonstrates genuine platform growth, while the proposed token supply reduction adds a compelling bullish narrative. With CAKE’s RSI indicating continued momentum potential and key moving averages providing support, the next 24-48 hours could determine whether PancakeSwap breaks toward new yearly highs or consolidates recent gains. Traders should watch the $3.15 resistance level as the critical battleground for CAKE’s near-term direction.

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