While the broader crypto market struggles to regain footing amid correction pressures, PancakeSwap (CAKE) has emerged as a standout performer. The decentralised exchange (DEX) token on Binance Smart Chain (BSC) has surged nearly 70% over the past week, reaching its highest level in 560 days.

This sharp rally comes despite the recent buzz around Aster, a new BSC project reportedly backed by Binance founder Changpeng Zhao (CZ). Yet, CAKE remains the dominant DEX token on the network and its renewed momentum signals a strong revival after nearly two years of sideways consolidation.

CAKE’s breakout marks a turning point for the token, which had been trapped in a prolonged downtrend since late 2021. Now, with both technical indicators and market sentiment aligning, analysts believe the rally may be far from over.

Technical Breakout After 567 Days of Consolidation

From a technical standpoint, CAKE’s price action has been remarkably disciplined. Since late 2023, it had been trading within a symmetrical triangle pattern, a structure typically associated with long-term accumulation before a major directional move.

After 567 days of consolidation inside this formation, CAKE finally broke out to the upside last week, a move that often signals the start of a new bullish cycle. Historical data show that such extended compression phases tend to precede strong, sustained price expansions once resistance is cleared.

At present, CAKE is hovering just below a key horizontal resistance at $4.95, a level it hasn’t closed above since 2022. Market observers suggest that a decisive breakout beyond this threshold could open the door to a rapid climb towards $9, nearly doubling its current valuation.

CAKE/USDT Weekly Chart | Credit: TradingView

The technical picture remains encouraging. The Relative Strength Index (RSI) sits comfortably above 50, indicating positive momentum, while the Moving Average Convergence Divergence (MACD) has turned bullish, reinforcing the case for continued upside.

Though short-term pullbacks remain possible, analysts believe CAKE’s breakout is structurally sound and supported by healthy trading volume, a critical confirmation for sustainable rallies.

Wave Count Analysis Points to $9.47 Target

The Elliott Wave analysis further strengthens the bullish outlook. Based on the current wave structure, CAKE appears to be in wave C of an A-B-C corrective pattern that began in October 2023.

Wave B formed the long-term symmetrical triangle, while wave C represents the impulsive phase now unfolding. Because the preceding consolidation lasted so long, wave C’s magnitude could be extended, leading to a more pronounced price rally.

CAKE/USDT Weekly Chart | Credit: TradingView

Analysts estimate that wave C could reach 1.61 times the length of wave A, setting an upside target near $9.47, a price zone aligning closely with CAKE’s long-term resistance range.

A clean breakout above $4.95 would not only confirm this wave structure but also validate the bullish continuation pattern, likely attracting renewed institutional and retail participation.

Fundamentals Remain Strong Despite New Competition

Despite facing new competition from Aster, PancakeSwap’s fundamental position on Binance Smart Chain remains unmatched. It continues to lead as the largest decentralised exchange on the network, with daily trading volumes consistently outperforming rivals.

The recent rise in BNB’s price, which hit a fresh all-time high, has also provided indirect support for CAKE’s upward momentum. As BSC network activity expands, transaction volumes and liquidity on PancakeSwap have surged, boosting demand for CAKE tokens used in governance, staking and yield farming.

The project’s ecosystem has also matured substantially, integrating cross-chain swaps, DeFi staking and NFT functionalities, features that have strengthened user engagement even during market downturns.

While Aster’s launch momentarily captured market attention, PancakeSwap’s established user base, liquidity depth and community trust continue to anchor its dominance within the BSC ecosystem.

Bullish Trend Likely to Continue

The confluence of strong fundamentals and bullish technical signals suggests that CAKE’s rally could be in its early stages. Traders and analysts are closely watching the $4.95 resistance, a zone seen as the final barrier before a potential parabolic move.

If the token sustains momentum and confirms a breakout above this level, the next leg could propel prices towards multi-year highs, potentially testing the $9–$9.50 region.

In the broader market context, CAKE’s resilience stands out. While many altcoins remain subdued amid global market consolidation, PancakeSwap’s performance reflects growing investor appetite for utility-driven DeFi assets rather than speculative tokens.

Conclusion: CAKE’s Sweet Comeback

PancakeSwap’s resurgence underscores the resilience of established DeFi protocols in an evolving market landscape. The token’s 567-day consolidation breakout, combined with a favourable macro setup on Binance Smart Chain, positions CAKE for further upside.

If momentum holds and the $4.95 level gives way, PancakeSwap could reclaim its role as one of the top-performing DeFi tokens of 2025, a comeback story baked perfectly for the bulls.