CAKE flipped $2 and rallied 13% to a fresh multi-month high as trading volume and Open Interest both jumped. Analysts point to a shrinking token supply and strong derivatives demand behind the move, with $2.4 resistance next in the way of a run toward $3.
PancakeSwap's CAKE token flipped $2 and climbed as high as $2.28, its first move to that level since December 2025. The token was trading around $2.26 at the time of writing, a 13.4% gain on the day.
Trading volume also jumped, climbing 112% to 110% and pointing to increased market participation. The altcoin's turnover rose to a record $25 million, according to CoinAnk data, a sign the rally is backed by strong demand.
A shrinking supply feeds the rally
CAKE's move follows a sustained deflationary push. WallStreetX observed that CAKE has recorded 34 consecutive months of deflation.
Since peaking in 2023, the token's supply has fallen by 53 million CAKE, a 14.5% reduction. Reduced supply has historically eased selling pressure and supported further gains.
Derivatives traders pile in
Demand extends into derivatives too. PancakeSwap's Open Interest surged 39% to $51 million, while volume rose 115% to $89 million. The Long/Short Ratio held above 1 across major exchanges, and Binance's top traders turned more bullish, with the ratio rising to 3.7.
Meanwhile, market delta has stayed positive since mid-August, currently around 131.6k, according to Coinank data.
Momentum points toward $3
Momentum indicators back the move. The Aroon Oscillator has held an upward trajectory near 92, reflecting intense bullish pressure. The Stochastic Momentum Index has climbed to 77, nearing overbought territory and further confirming the buying pressure.
If demand holds, CAKE could clear $2.4 resistance and target a move toward $3.00. For that outlook to hold, CAKE needs to stay above $2; failure to do so would likely send it back toward $1.8.
Source: AMBCrypto
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