Key takeaways
- PancakeSwap is holding above the major support level at $1.55, indicating a bullish move ahead.
- High open interest coupled with positive funding rates indicate increased participation.
PancakeSwap (CAKE) is trading in the green above $1.60 on Thursday after finding support around that key level the day before. Positive derivatives data, coupled with constructive price action, suggest that the CAKE index may continue its upward trajectory in the coming days.
Bullish derivatives data pushes CAKE index higher
Coinglass data It reveals a sharp increase in PancakeSwap futures open interest (OI), which rose to $32.48 million on Tuesday and rose further to $32.28 million on Thursday, the highest level since March 17.
A steady increase in OI indicates new money entering the market, which could result in CAKE prices continuing to rise.
Additionally, funding rates are showing a positive shift, further supporting bullish sentiment. CoinGlass’s OI-weighted funding rate for CAKE turned positive on Wednesday and reached 0.0056% on Thursday.
This indicates that long positions are pushing short positions, which also indicates that market sentiment remains bullish.
PancakeSwap Price Forecast: Momentum indicators point to further upside
The 4-hour CAKE/USDT chart is bullish and active, with Pancakeswap trading at $1.60 at press time.
The coin maintains a constructive bias, supported by its position above the 50-day and 100-day EMAs at $1.46 and $1.57, respectively.
CAKE’s current price action suggests that fundamental demand continues to drive the recent rally, despite CAKE remaining below its 200-day moving average at $1.81, which represents the upper boundary of the broader corrective structure.
The Relative Strength Index (RSI) on the daily chart is at 64, which indicates that although the price has strong upward momentum, it may be vulnerable to consolidation as it approaches the overbought zone.
The Moving Average Convergence and Divergence (MACD) remains positive, reinforcing the bullish outlook in the short term.
On the upside, initial resistance is found at the 50% retracement of the last swing at $1.67, followed by the 61.8% Fibonacci level at $1.78 and nearby horizontal resistance at $1.79. The 200-day moving average at $1.81 represents a bigger barrier.
However, if the bears regain control, immediate support lies at the 100-day moving average at $1.57, followed by the 38.2% retracement at $1.55.
A deeper pullback could lead to a test of the 50-day EMA at $1.46 and the 23.6% Fib level at $1.40, with stronger structural support emerging near $1.28.
