(CAKE) tops $1.60, bullish sentiment grows amid rising Open Interest

Key takeaways

• PancakeSwap is holding above the key support level at $1.55, hinting at an upside move ahead.
• Rising open interest alongside positive funding rates signals increasing participation.

PancakeSwap (CAKE) is trading in the green above $1.60 on Thursday after finding support around this key level the previous day. Positive derivatives data, along with constructive price action, suggest that CAKE could continue its upward trajectory in the coming days.

Bullish derivatives data pushes CAKE higher

CoinGlass data reveals a sharp increase in the futures’ Open Interest (OI) for PancakeSwap, which rose to $32.48 million on Tuesday and climbed further to $32.28 million on Thursday, the highest level since March 17. 

The steady increase in OI signals that new money is entering the market, which could sustain CAKE’s ongoing price rally.

Additionally, the funding rates are showing a positive shift, further supporting the bullish sentiment. CoinGlass’ OI-Weighted Funding Rate for CAKE turned positive on Wednesday and reads 0.0056% on Thursday. 

This indicates that long positions are paying short positions, further suggesting that the market sentiment remains bullish.

PancakeSwap price forecast: momentum indicators suggest further rally

The CAKE/USDT 4-hour chart is bullish and efficient, as Pancakeswap is trading at $1.60 at press time.

The coin retains a constructive bias, supported by its positioning above the 50-day and 100-day Exponential Moving Averages (EMAs) at $1.46 and $1.57, respectively. 

CAKE’s current price action indicates that underlying demand continues to drive the recent advance, despite CAKE remaining below the 200-day EMA at $1.81, which marks the upper boundary of the broader corrective structure.

The Relative Strength Index (RSI) on the daily chart is at 64, suggesting that while the price has firm upside momentum, it could be vulnerable to consolidation as it nears overbought territory. 

The Moving Average Convergence Divergence (MACD) remains positive, reinforcing the bullish short-term outlook.

On the upside, initial resistance is found at the 50% retracement of the latest swing at $1.67, followed by the 61.8% Fibonacci level at $1.78 and a nearby horizontal resistance at $1.79. The 200-day EMA at $1.81 represents a more substantial barrier.

However, if the bears regain control, immediate support lies at the 100-day EMA at $1.57, followed by the 38.2% retracement at $1.55. 

A deeper pullback could test the 50-day EMA at $1.46 and the 23.6% Fibonacci level at $1.40, with stronger structural support emerging near $1.28.