DeFi On The Move: PancakeSwap (CAKE) Records 70% Weekly Gain

The decentralized finance (DeFi) sector is witnessing a significant resurgence, with PancakeSwap (CAKE) leading the charge after an impressive 70% weekly gain. This surge aligns with the broader market recovery, as Total Value Locked (TVL) in DeFi shows a steady uptrend despite a slight February pullback.

The growing liquidity across DeFi protocols signals renewed investor confidence, particularly in decentralized exchanges (DEXs) and staking solutions. As capital inflows increase on Ethereum, Solana, and BNB Chain, DeFi’s momentum could continue to build, further solidifying its role in the crypto space.

DeFi TVL Developing Uptrend 

The Total Value Locked (TVL) in DeFi serves as a key indicator of the sector’s overall health, reflecting the amount of capital deposited across decentralized finance protocols. As shown in the latest TVL chart, the market has been on a steady upward trajectory since the start of February, signaling renewed investor confidence and growing liquidity within DeFi ecosystems. This resurgence follows months of stagnation, with TVL decreasing since December peak of $138,275B.

While February has seen a slight pullback, the overall trend remains bullish, suggesting that capital inflows into lending platforms, decentralized exchanges, and yield farming protocols are sustaining momentum. 

The rise in TVL coincides with increased activity on chains like Ethereum, Solana, and BNB Chain, as well as the growing adoption of Layer 2 scaling solutions such as Arbitrum and Optimism. With institutional players showing heightened interest in DeFi and new innovations like Real-World Assets (RWAs) and liquid staking derivatives gaining traction, TVL could continue its upward trend, further cementing DeFi’s role in the broader crypto landscape.

CAKE Price Analysis

The daily chart of CAKE illustrates a significant recovery from the long-term support region between $1.00 and $1.50 marked by a sharp upward movement. This bullish impulse has pushed the price toward a critical resistance zone reaching $5.17 on Mar. 13.

Despite this upward momentum, CAKE remains confined within a descending channel, suggesting that a confirmed breakout is needed to sustain further upside.

The daily Relative Strength Index (RSI) has rebounded from oversold conditions, signaling renewed buying pressure. However, it has yet to reach overbought territory, indicating room for potential upside.

The presence of long wicks near resistance zones implies selling pressure, which could lead to a temporary retracement before another attempt at a breakout.

CAKE appears to be undergoing a corrective phase. The price could establish a higher low of around $2.60 (0.618 Fibonacci retracement) before resuming its uptrend. If the price fails to hold above this level, further downside toward $2.00 could be expected. 

A decisive breakout above $3.10, with strong volume, would confirm bullish continuation toward the 0.382 Fibonacci retracement at $3.58 and potentially higher resistance levels near $4.20.

CAKE Price Prediction

On the 1-hour chart, CAKE is in a corrective wave structure following its recent strong rally to $3.40 from a low of $1.12. A clear (a)-(b)-(c) correction is forming, with Wave (a) leading to a sharp decline, followed by a minor rebound in Wave (b), and an anticipated final Wave (c) retracement before a potential continuation higher.

Despite the setback and an ongoing correction, CAKE is still up 70% since last Monday, making it one of the biggest gainers in DeFi. 

Key Fibonacci retracement levels indicate that Wave (c) could extend toward $2.10 or even near $1.90. This region would serve as a strong support zone and a potential re-entry opportunity for buyers. If the price holds above these levels and rebounds, the next bullish leg could push CAKE toward the $3.58 (0.382 Fibonacci retracement) resistance zone.

The projected path suggests that once the corrective phase completes, a renewed impulsive move could target the $4.19 resistance zone, which aligns with the 0.236 Fibonacci retracement. The final breakout from the descending wedge on the daily chart could send CAKE into a more aggressive uptrend, potentially reaching the $5.17 level in the long term. However, invalidation of this bullish outlook would occur if CAKE falls below $1.90, which would indicate further downside risks.

Key Levels to Watch

• Immediate Resistance: $3.10 (0.5 Fibonacci retracement)
• Key Resistance: $3.58 (0.382 Fibonacci retracement)
• Major Resistance: $4.20 (descending wedge breakout target)
• Immediate Support: $2.60 (0.618 Fibonacci retracement)
• Critical Support: $1.90 (0.786 Fibonacci retracement, invalidation level)
• Short-Term Target: $3.58–$4.19 if momentum sustains
• Long-Term Target: $5.17 (0 Fibonacci retracement, potential breakout target)