PancakeSwap (CAKE) is currently maintaining a short-term bearish trend after failing to break the 7-month accumulation zone and being dominated by selling pressure, although it could still recover in the short term to 2.7 USD or even 2.95 USD.
CAKE's price remains below the key resistance zone with technical signals indicating that the sellers are in control, but important support levels still open up the possibility of temporary recovery if liquidity is activated.
MAIN CONTENT
CAKE failed to break the 2.95 USD price zone and quickly dropped back to the previous short-term trading zone, signaling overwhelming selling strength.
Technical indicators (A/D, MACD) along with the liquidation heatmap analysis show that selling pressure remains very high, but the 2.55 USD zone is considered an important support.
The movements of Bitcoin in the upcoming sessions will directly affect CAKE's short-term trend, with the possibility of bouncing back to 2.7 USD – 2.95 USD if liquidity improves.
What is CAKE?
CAKE is the native token of the decentralized exchange PancakeSwap operating on the BNB Smart Chain.
CAKE is not only used to pay transaction fees on PancakeSwap but also plays a vital role in this platform's DeFi ecosystem, from yield farming to staking and governance.
Among current DEXs, PancakeSwap is a popular choice for users seeking a safe trading experience, low fees, and diverse tokens. Along with holding CAKE, holders can engage more deeply in governance and potential reward programs.
Decentralized exchanges are increasingly asserting their position in the global cryptocurrency ecosystem, especially in Asia as transaction fees and barriers for newcomers are being optimized.
Nguyen Thanh Trung, CEO of Kyros Ventures, 2024. Source: Kyros Report 2024
Why is CAKE's price under selling pressure?
CAKE's price is in a downtrend after failing to break the 2.95 USD zone, indicating that selling pressure prevails and market sentiment leans towards the sellers.
On the daily chart, CAKE has fallen below the previous low at 2.535 USD (July 24, 2025), marking a break of the bullish structure. The A/D indicator (Accumulation/Distribution) has also set a new low compared to the last 2 months, indicating a clear outflow of funds from CAKE. MACD has recorded a bearish crossover, confirming the potential continuation of the correction trend.
Decreased liquidity along with weakened trading volume over the past 48 hours also reinforces the view that selling pressure remains high. Investors are cautious as the next support zone around 2.55 USD is being tested multiple times, reflecting the hesitant sentiment and short-term bearish pressure that will persist if strong capital inflows do not return.
A short-term bearish trend is commonly seen in DEX tokens when the general market lacks new momentum, especially after technical breakout failures.
Glassnode Insights, 2024. Source: Glassnode Q2/2024 Market Report
What happened after CAKE failed to break the 2.95 USD zone?
After an unsuccessful rise to 2.95 USD at the end of July, CAKE quickly dropped back to a consolidation zone that has lasted over 7 months, confirming the short-term bearish trend and weakening buyer confidence.
Strong selling pressure has pulled CAKE down from the medium-term support level, bringing the price back to 2.55 USD – which is also the 25% zone of the long-term fluctuation range on the D1 frame. The A/D indicator and MACD simultaneously confirm the prevailing bearish momentum on both the daily and 4-hour charts.
However, this support zone still serves as a temporary buffer, creating momentum for some short price bounces in the recent session (up 2.83% on Sunday, August 3, 2025). However, the recovery momentum is not truly sustainable if demand does not improve significantly and liquidity remains weak.
What are the levels to pay attention to for CAKE's price recovery in the short term?
CAKE has the potential to bounce back to levels of 2.7 USD or even 2.95 USD if the 2.55 USD zone continues to serve as strong support, especially when liquidity or trading volume improves.
This scenario has been recorded by the liquidation heatmap: the liquidity cluster around 2.5 USD has created momentum for price rebounds over the weekend, with price zones of 2.7 USD and 2.8 USD identified as the next liquidity absorption areas. The levels of 2.95 USD and 3.05 USD become technical resistance zones that need special attention if strong recovery waves occur.
Currently, technical indicators have not confirmed a clear short-term recovery. If the price continues to be rejected in the 2.6 USD area, the risk of a deep decline returning still exists.
Clearly defined support-resistance zones are crucial for short-term DEX token trading strategies, helping investors react flexibly to unexpected volatility.
Binance Research, DEX Analysis Report & New Trends, 2024
What factors could change CAKE's trend in the near future?
Bitcoin's volatility in the upcoming sessions is considered a leading indicator directing CAKE's movements, due to the high interconnection between these two assets in the cryptocurrency market.
Last weekend, Bitcoin showed signs of recovering around the 112,000 USD area but has yet to establish a clear recovery trend. If buying pressure on Bitcoin increases, it could have a ripple effect, pulling CAKE up to the aforementioned resistance levels. Conversely, if Bitcoin continues to weaken, the risk of prolonged price decline for CAKE is very high.
Overall market liquidity and general investor sentiment also play an essential role. If the market sees positive macro news, capital flows can return to DeFi tokens and DEXs like CAKE.
What do technical indicators reflect about selling pressure?
The A/D (Accumulation/Distribution) indicators and MACD both provide clear signals of strong selling pressure dominating CAKE in both the short and medium term.
The A/D indicator has dropped to a new low in the last 2 months, reflecting that funds are leaving CAKE to seek more profitable or safer channels as the short-term downtrend prevails. At the same time, MACD on both D1 and H4 frames confirms a clear momentum shift towards the sellers.
Trading volume has also significantly decreased compared to previous sessions, indicating a lack of consensus from buyers while selling pressure remains.
The liquidation heatmap shows that the 2.7 USD zone is a strong liquidity magnet, and the possibility of the price bouncing back here still exists if the market has enough absorption strength for short positions.
CoinGlass Liquidation Report, 2025. Source: CoinGlass
How does CAKE's recovery potential compare to other DeFi tokens?
Compared to other representative DeFi tokens in the same segment, CAKE's recovery potential in the short term is still under pressure as it has not established sustainable buying strength.
CAKE's price volatility since the beginning of 2025 is lower than the rapid recovery potential of leading tokens like UNI and AAVE in short pump phases. However, thanks to good liquidity volumes on the PancakeSwap platform, CAKE can rebound strongly when cash flow signals into DeFi in general appear.
Token Name Market Cap (USD) Weekly Volatility (%) Monthly Volatility (%) CAKE about 700 million -4.5 -12.7 UNI over 3.5 billion -3.2 -8.4 AAVE over 1.1 billion -2.6 -5.8
Comparing short-term volatility of some major DeFi tokens. Source: CoinMarketCap, 08/2025.
What signals indicate that CAKE may reverse?
Strong reversal signals will only be confirmed if CAKE successfully breaks above the 2.67 USD zone and then closes with confirmation candles above 2.95 USD with large volume, completely breaking the short-term bearish structure.
Technical indicators such as RSI and MACD combined with volume breakout are necessary conditions. If the market sees new capital flows into DeFi, tokens on DEX platforms like CAKE will be the focus, but the risk of fakeouts at old highs still needs to be guarded against, especially in a low liquidity phase.
Careful observation of Bitcoin's movements and capital flows at major support-resistance clusters remains the top priority strategy for short-term CAKE traders.
What risks should CAKE traders be aware of at this moment?
First is the risk of position liquidation when the price falls to deep support zones due to a sudden increase in selling pressure or significant market volatility.
The next risk comes from market liquidity. Low trading volumes not only make it difficult to enter/exit trades but also pose a greater risk of price slippage.
Another factor to note is the unpredictable volatility due to macroeconomic factors or unexpected news from the Bitcoin market. Overall, tight risk management, avoiding large leverage, and sticking to technical signals are essential to help traders limit risk.
What should the trading strategy for CAKE be in the current context?
Trading CAKE in a short-term bearish structure still dominating requires a defensive strategy and flexibility to adapt to each price wave.
Traders should wait for confirmation of breakouts of key zones (2.67 USD or 2.95 USD) accompanied by increased volume before opening large positions. Short-term trading around clearly defined support-resistance zones (range trading) is the safe choice at this time, combined with tight risk management to avoid liquidation when prices unexpectedly reverse.
Monitoring signals from Bitcoin and liquidity flows from other DEX markets will help optimize reasonable entry/exit points.
Forecasting CAKE's trend in the long term
Although CAKE faces short-term disadvantages for now, in the long term, the potential for recovery will return if the DeFi market explodes and large capital flows back into decentralized exchanges. PancakeSwap maintains a top position in this wave, giving CAKE a chance to recover if it accumulates well in the low price zone.
History has shown that CAKE can rebound strongly after large washout events when new dynamics drive capital flows back into DeFi, such as the growth surge in 2021. However, macroeconomic factors, regulations, and competition among DEXs will be factors to watch closely.
Comparing CAKE's price movements with Bitcoin
In the overall market picture, CAKE's price generally moves in tandem with Bitcoin's volatility, with a stronger decline in bearish phases and good recovery potential when Bitcoin rises sharply.
Historical analyses of the correlation between CAKE and Bitcoin suggest that each correction or prolonged range breakout of Bitcoin will open new waves for CAKE, especially if BTC strongly recovers above 115,000 USD – 120,000 USD.
Therefore, investors should watch Bitcoin's upward waves to determine the optimal entry points for DEX tokens like CAKE, especially when cash flow indicators begin to rise again.
Frequently Asked Questions
What is CAKE?
CAKE is the native token of PancakeSwap, a decentralized exchange on the BNB Smart Chain. In addition to trading, CAKE is also used for staking, yield farming, and participating in system governance.
Why has CAKE's price dropped sharply recently?
CAKE's price drops due to the failure at the 2.95 USD zone, along with high selling pressure and capital outflows from DeFi tokens in a non-recovering general market.
What are the important price zones of CAKE currently?
The key support zone is around 2.55 USD, while short-term resistance is at 2.7 USD and 2.95 USD. If it surpasses 2.95 USD, the short-term bearish structure may be broken.
What should traders do when CAKE experiences strong volatility?
Prioritize trading within clearly defined support-resistance zones, avoid high leverage, and closely follow cash flow and volume signals when opening/closing positions.
How does CAKE's price depend on Bitcoin?
CAKE's price often trends alongside Bitcoin. Strong volatility from Bitcoin can create ripple effects on DeFi tokens like CAKE.
What indicators help identify the strength of CAKE's trend?
Indicators such as A/D, MACD, liquidation heatmap, and trading volume reflect buying/selling pressure and reversal signals for CAKE quite closely.
Does CAKE have long-term recovery potential?
If the DeFi market recovers and PancakeSwap maintains its leading position, CAKE still has long-term growth potential thanks to stimulus programs and product innovations.
Source: https://tintucbitcoin.com/cake-co-hoi-phuc-len-295-usd/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!