PancakeSwap (CAKE), the largest decentralized exchange (DEX) on the BNB Chain, is showing strong bullish momentum after bouncing off a key support level of $1.55. After weeks of consolidation, CAKE has finally broken out, surging over 16% in the past 24 hours.

With a fully diluted valuation of around $794 million and a daily trading volume of $239 million, this mid-cap altcoin is drawing fresh attention from traders and investors.

What’s boosting the surge?

Why Is CAKE Pumping?

CAKE’s sharp price increase is largely driven by a surge in activity on the PancakeSwap DEX. Over the past 24 hours, PancakeSwap led all decentralized exchanges in trading volume, hitting around $1.24 billion. In comparison, Solana’s Raydium recorded about $418 million, while Ethereum’s Uniswap (UNI) saw roughly $1 billion in daily volume.

The Mubarak Memecoin Boost

As previously reported by Coinpedia, the rising demand for the Mubarak (MUBARAK) memecoin has significantly fueled PancakeSwap’s activity. MUBARAK’s price has skyrocketed by over 2,000% in just four days, reaching approximately $0.13 at the time of writing.

Growing TVL and Investor Confidence

According to DeFiLlama, PancakeSwap’s total value locked (TVL) has climbed to about $1.62 billion, further strengthening its position as a leading DeFi platform. Additionally, over $160 million worth of CAKE is currently staked, reflecting strong investor confidence in the project.

PancakeSwap Technical Analysis

From a technical perspective, CAKE has been forming a bullish reversal pattern over the past year. This includes a possible inverted head and shoulders (H&S) formation, along with a bullish divergence in the weekly Relative Strength Index (RSI).

The altcoin has established strong support above $1.55, consistently closing above this level in the past two weeks. If bullish momentum continues, CAKE could target $5 in the near future, aligning with the 1.618 Fibonacci Extension on the daily chart.