Ethereum News Today: PancakeSwap Expands to Base Chain as CAKE Surges 38% Amid Bullish Technical Pattern

PancakeSwap Infinity, the latest decentralized exchange (DEX) iteration from the leading DeFi platform, has expanded to the Base chain, an Ethereum Layer 2 network designed for low-cost transactions and scalability. The launch follows a strategic rollout on BNB Chain in late April and arrives as Base records elevated total value locked (TVL) and DEX volume metrics [1]. The move introduces features such as customizable fee structures via Hooks, dual pool types, and gas-saving optimizations to Base’s growing ecosystem, aligning with PancakeSwap’s vision of scalable, cross-chain DeFi solutions. The expansion also coincides with the activation of PancakeSwap’s one-click cross-chain swaps via the Across Protocol, enabling seamless asset transfers between major chains like BNB Chain, Arbitrum, and Base [1].

The CAKE token, PancakeSwap’s native asset, has drawn attention for its technical setup amid the expansion. Recent price action has formed an ascending triangle pattern, with key resistance clustered between $2.80 and $3.00. This pattern, characterized by higher lows and a defined trendline, suggests accumulating bullish momentum as buyers test the upper boundary multiple times since January. A confirmed close above $3.00 could validate the pattern, projecting a potential rally toward $4.00 based on measured move analysis [1]. While the token has temporarily retreated to $2.65, it remains above critical technical supports, including the 20-day EMA and the triangle’s ascending trendline. Increased volume during recent breakout attempts further signals heightened market interest [1].

The CAKE token’s performance has also aligned with broader market dynamics, particularly BNB’s rally to an all-time high of $801 in July. Analysts highlight a 38% surge in CAKE’s price during the same period, with weekly trading volume reaching $286 million [2]. This liquidity surge reflects the token’s growing appeal as a speculative asset within the Ethereum ecosystem, particularly as regulatory pressures mount on centralized exchanges. The Base chain’s adoption, underpinned by Coinbase’s infrastructure, positions PancakeSwap to capture a larger share of the Ethereum-derived DeFi market [3].

Despite the bullish setup, caution is warranted. A breakdown below $2.80 could trigger a pullback toward $2.30 or the psychological $2.00 level, invalidating the ascending triangle’s bullish case. However, as long as trading volume remains robust, the long-term trend for CAKE remains intact. The token’s future trajectory will also depend on its utility within the PancakeSwap ecosystem, including governance participation and staking incentives, which drive demand beyond speculative trading [1].

PancakeSwap’s expansion to Base underscores its agility in addressing DeFi pain points like high gas fees, potentially driving sustained user growth. Whether CAKE can break through its key resistance and reach $4.00 will hinge on both technical execution and the platform’s ability to retain user traction in a competitive market. The Base launch marks a pivotal step in this strategic evolution, with CAKE’s price serving as a key metric to gauge the success of the initiative.

Sources:

[1] Crypto [title: PancakeSwap’s Infinity hits Base chain. Will CAKE price follow and hit new highs?], https://crypto.news/pancakeswaps-infinity-hits-base-chain-will-cake-price-follow-and-hit-new-highs/

[2] CCN.com [title: PancakeSwap (CAKE) Price Follows BNB With 38% Spike — Data Says It's Still Undervalued], https://www.ccn.com/analysis/crypto/pancakeswap-cake-crypto-price-follows-bnb-undervalued/

[3] InsideBitcoins.com [title: PancakeSwap, Aptos, ai16z, Ondo - InsideBitcoins.com], https://insidebitcoins.com/sponsored/next-cryptocurrency-to-explode-23-july-pancakeswap-aptos-ai16z-ondo