The PancakeSwap price is rebounding as investors react to the new rising activity in its ecosystem. The CAKE price is trading at $21, which is about 18% above the lowest level this month.
Why CAKE is soaring
PancakeSwap is the biggest DeFi platform built using the Binance Smart Chain (BSc) ecosystem. The platform has features that enables users to trade, earn, and win using cryptocurrencies. It also recently unveiled its non-fungible tokens (NFT). One can earn using PancakeSwap by doing what is known as farming. At the tine of writing, one can earn an APR of about 37.56% using CAKE-BNB.
The PancakeSwap ecosystem has been seeing significant growth in the past few months. Data compiled by DeFi Llama shows that the total value locked (TVL) in the ecosystem hss rebounded to more than $5.5 billion as demand rises. This TVL is substantially above its lowest level in April. It is also closing in on its all-time high of more than $8 billion.
Activity in the ecosystem could jump in the next few months as Binance implements its $1 billion funding project. Most of these funds will go towards newer projects that are using the technology. At the same time, some of these funds will go towards boosting liquidity in some of the DeFi platforms in the ecosystem. Therefore, this could provide substantial benefits to the PancakeSwap ecosystem.
PancakeSwap price prediction
The four-hour chart shows that the CAKE price has rebounded substantially in the past few sessions. It has moved from the key support at $17.7 to the current high of $20.80. Along the way, the coin has moved above the 25-day and 15-day moving averages. It is also attempting to move above the key resistance at $21.35, which was the highest level on October 7th. The MACD has also moved above the neutral level.
Therefore, a more bullish break-out will be confirmed if the price moves above the key resistance at $21.35. If this happens, the next key resistance to watch will be $25, which is about 21% above the current level. On the flip side, a drop below the key support at $20 will invalidate the bullish view.