PancakeSwap (CAKE) Surges 18% as Token Supply Cut Proposal Passes - Bulls Target $2.79

PancakeSwap (CAKE) Surges 18% as Token Supply Cut Proposal Passes - Bulls Target $2.79 - Blockchain.News

Quick Take

• CAKE currently trading at $2.56 (+2.24% in 24h) • PancakeSwap's RSI at 52.31 signals neutral momentum with bullish MACD crossover emerging • Community voted to slash CAKE token supply from 750M to 450M, triggering 18% price surge

What's Driving PancakeSwap Price Today?

The primary catalyst behind CAKE price action stems from last week's groundbreaking community decision to reduce the total CAKE token supply by 40%, from 750 million to 450 million tokens. This deflationary move, approved on September 3rd, immediately triggered an 18% price increase as investors recognized the potential for enhanced scarcity and value appreciation.

Adding momentum to PancakeSwap's bullish narrative, the platform achieved a record-breaking $58.7 billion in trading volume during August 2025, marking its highest performance since January. This milestone reinforces PancakeSwap's position as the second-largest decentralized exchange by activity, demonstrating strong underlying fundamentals supporting the CAKE price rally.

The ecosystem expansion continues with PancakeSwap's introduction of cross-chain swaps, a Telegram trading bot, and dynamic fee structures through Hooks. While these feature launches haven't immediately impacted CAKE price, they position the platform for sustained growth across Ethereum and layer-2 networks.

CAKE Technical Analysis: Bullish Signals Emerge

PancakeSwap technical analysis reveals strengthening bullish momentum across multiple timeframes. The CAKE RSI reading of 52.31 sits in neutral territory, providing room for further upside without entering overbought conditions. More encouraging is PancakeSwap's MACD histogram showing a positive 0.0195 reading, indicating bullish momentum is building as the MACD line approaches a golden cross above its signal line.

The CAKE/USDT pair is trading above key short-term moving averages, with the current $2.56 price level sitting comfortably above both the 7-day SMA at $2.47 and 20-day SMA at $2.49. However, PancakeSwap faces resistance from the 50-day SMA at $2.64, which aligns closely with the upper Bollinger Band at $2.68.

PancakeSwap's Stochastic oscillator shows extreme readings with %K at 92.40, suggesting the token may be due for a short-term pullback. The %B position of 0.6937 within the Bollinger Bands indicates CAKE is trading in the upper portion of its recent range, supporting the bullish bias while highlighting potential resistance zones.

PancakeSwap Price Levels: Key Support and Resistance

Based on Binance spot market data, PancakeSwap support levels are well-defined with immediate support at $2.33, which coincides with the strong support level and lower Bollinger Band at $2.30. This zone represents a critical floor where buyers have historically stepped in during previous corrections.

On the upside, CAKE resistance begins at the immediate level of $2.79, where profit-taking from recent supply cut gains may emerge. The more significant PancakeSwap resistance sits at $3.31, representing the strong resistance level that would need to break for a sustained bull run toward new yearly highs.

The current pivot point at $2.54 serves as a key battleground, with CAKE price trading just above this level. A decisive break above would target the immediate resistance at $2.79, while failure to hold could see a retest of PancakeSwap support levels around $2.33.

Should You Buy CAKE Now? Risk-Reward Analysis

For swing traders, the current CAKE price setup offers an attractive risk-reward ratio with entry near $2.56 and stops below the $2.33 support level. The target of $2.79 provides approximately 9% upside against 9% downside, creating a balanced 1:1 risk-reward scenario.

Day traders should monitor the CAKE/USDT pair for a break above $2.64 (50-day SMA) with volume confirmation before considering long positions. The extremely high Stochastic readings suggest waiting for a pullback to the $2.47-$2.49 range may offer better entry points.

Long-term investors may find value in the token supply reduction narrative, as the 40% cut in total CAKE supply could drive sustained price appreciation over months. However, the overbought short-term conditions suggest patience for better accumulation levels around PancakeSwap support zones.

Conclusion

CAKE price momentum remains constructive following the transformative supply reduction proposal, with technical indicators supporting further gains toward $2.79 resistance. While short-term conditions appear stretched, the fundamental catalyst of reduced token supply provides a compelling medium-term bullish thesis. Traders should watch for a successful break above $2.64 to confirm the next leg higher, while managing risk around the well-defined $2.33 support level.

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