PancakeSwap's $1T Trading Volume Boosts CAKE Token by 50%

PancakeSwap, a leading decentralized exchange (DEX) on the Binance Smart Chain (BSC), has hit a significant milestone with its total trading volume surpassing $1 trillion. This achievement has brought the CAKE token, the native cryptocurrency of PancakeSwap, into the spotlight, with its price surging by nearly 50% over the past week.

The surge in PancakeSwap's trading volume has been driven by a growing interest in the BSC meme coin ecosystem. One of the most popular meme coins, Broccoli, inspired by Changpeng Zhao's dog, has contributed to the network's success. PancakeSwap's total fees this year have risen to $64 million, bringing the 365-day total to $274 million, making it one of the most profitable players in the decentralized finance (DeFi) industry.

The CAKE token price has been on an upward trajectory, with the daily chart showing a parabolic rise after falling to a low of $1.1855 earlier this month. This level was significant as it marked the lowest point for the token since August 2021. The price has since formed a double-bottom pattern, with the neckline at $4.5856, its highest level on Dec. 4. A double-bottom is a bullish chart pattern that indicates a potential trend reversal.

The CAKE price has moved above the 50-day and 200-day Exponential Moving Averages (EMAs) and is forming a bullish pennant chart pattern. This pattern is a popular continuation sign, suggesting that the path of the least resistance for the CAKE coin price is bullish. The initial target for the CAKE token price is $3.4185, its highest level this week. A break above this level could point to further upside, with the next point to watch being $4.5856, the double-bottom neckline and the ultimate resistance of the Murrey Math Lines tool.