CAKE +108.88% 24H Due to Technical Catalysts and On-Chain Activity

On SEP 2 2025, CAKE surged by 108.88% within 24 hours to reach $2.546, marking a sharp reversal in its recent price action. The movement followed a notable increase in on-chain activity, including inflows to long-term wallets and elevated transaction throughput on key decentralized exchanges. While the token continued to face long-term bearish pressure, with a 761.58% decline over seven days, the short-term rally suggests a potential shift in sentiment among market participants.

Analysts project that the sudden price jump may be attributed to the activation of technical indicators that signaled oversold conditions earlier in the week. The Relative Strength Index (RSI) dipped below 30, and the 20-day exponential moving average crossed below the 50-day, triggering automated strategies and discretionary buy signals from institutional and retail traders alike. The move also coincided with a decline in short positions, which had previously dominated the market structure.

The technical bounce came alongside increased activity on the project’s decentralized governance platform, where a recent proposal to optimize gas efficiency and expand cross-chain compatibility was approved. This development, while not directly tied to the price movement, appears to have contributed to a broader sense of confidence among the CAKE community. On-chain data suggests that a cluster of strategic wallets began accumulating the token in the days prior to the price surge, reinforcing the notion that the rally was driven by both algorithmic and fundamental triggers.

Technical analysts are now scrutinizing whether the recent price action represents a short-term countertrend or the beginning of a new upward cycle. The 200-day moving average currently lies at $0.54, and the recent high of $2.546 represents a significant deviation from that long-term trend line. However, the formation of a bullish engulfing pattern in recent candlestick data has drawn attention from technical traders who believe the market is entering a phase of consolidation following the sharp sell-off.

Backtest Hypothesis

To evaluate the potential efficacy of a strategy based on the recent CAKE price action, a backtesting approach has been designed using the RSI and EMA crossover indicators. The hypothesis assumes a long entry at the point where RSI crosses above 30 and the 20-day EMA crosses above the 50-day EMA. A stop-loss is placed at the nearest support level below the entry, and a take-profit target is set at the nearest resistance above. The strategy is tested over a 30-day window, incorporating only confirmed on-chain inflows as confirmation signals. The results aim to determine whether the combination of technical and on-chain data could have identified the recent CAKE rally in advance.