PancakeSwap Price Prediction: CAKE volume surges over 190%, long-term target price is $40.79

PancakeSwap (CAKE) volume surged over 190%, with a current report of 3.21 USD during the Asian afternoon session today (28), a daily pump of 12.49%. This rebound is the result of the combined effects of macro chain strength, new product launches, deflationary actions, and continuously strengthening technological momentum.

Top analyst Javon Marks shared on X that the CAKE price is in a confirmed breakout structure, with a long-term target price of $40.79. He stated that if this structure is implemented, it could mean over 1,100% of pump potential.

Another market commentator, Cryptobullfish, stated that CAKE may be one of the most underrated tokens on the CEX exchange public chain, especially when the trading price of CEX tokens themselves is at a historical high.

PancakeSwap product expansion and deflation enhance the fundamentals

On July 24, PancakeSwap launched its Infinity DEX product on the CEX exchange public chain. This expansion adds a new user base and fee opportunities to the PancakeSwap ecosystem, which may increase the demand for CAKE tokens.

The deflationary mechanism of the protocol is still effective. According to the dashboard of PancakeSwap, a total of 546,000 CAKE tokens have been burned in the week ending July 22, worth approximately $1.53 million.

As the monthly supply decreases by about 0.574%, the increasing user participation may support the price due to token scarcity.

CAKE price chart structure points to macro breakout

Technical analysis supports a bullish outlook, CAKE has broken through the long-term downtrend line and completed an inverted head and shoulders pattern. The volume surged significantly at the key support level, confirming strong accumulation momentum.

According to the chart and the analysis shared by Javon Marks, the trend of this pattern is restrained, with a target price of $40.79. Currently, the price is consolidating above the neckline of this pattern, which has now become a support level.

The current resistance level is expected to be around $3.70 to $4.00, with the historical minimum resistance level between $6 and $10.

Due to the CAKE price currently being above the key technical area and with strong volume, traders are watching to see if the token will maintain its growth momentum.

After breaking through 3.00 USD, the previous resistance level has turned into a support level. The next target area is between 4.00 USD and 6.00 USD, depending on the previous price trends.

According to the pressure level of the price increase of PancakeSwap and the future market conditions, its price may still reach double-digit levels. Currently, technical traders and CEX exchange public chain investors will continue to pay attention to CAKE as the best-performing DEX token in the ecosystem.

(Source: Trading View)