PancakeSwap (CAKE) is showing signs of a bullish reversal after forming a double-bottom pattern and defending a key support area. A breakout above resistance could strengthen the upside outlook for CAKE, while higher burn activity may reduce supply and add support to the token’s longer-term price potential. For a token tied closely to activity on the exchange, both the chart setup and weekly burn data are being watched by traders looking for confirmation rather than a one-day move.

At the time of writing, CAKE is trading at $1.73, with a 24-hour trading volume of $26.26 million and a market capitalization of $555.33 million, according to CoinMarketCap. Although the token has fallen 1.27% over the past 24 hours, the current price structure and rising token burns suggest a possible bullish reversal.

Source: CoinMarketCap

Also Read: PancakeSwap (CAKE) Price Breakout Signals Potential Rally Toward $2.40

CAKE Price Eyes $2.30 on Double-Bottom Breakout

According to crypto analyst Crypto With Gopal, CAKE is showing a potential bullish reversal after forming a double-bottom pattern around the $1.20–$1.30 support zone.

Buyers have defended this area twice, signaling stronger demand and easing selling pressure. The pattern suggests that CAKE may be building a base, with bulls now trying to push the price toward the key $1.80 neckline.

Source: Crypto With Gopal’s X Post

A breakout above the $1.80 neckline would confirm the double-bottom pattern and reinforce the bullish outlook for CAKE. If that move develops quickly, $2.30 is the next key level to watch.

If CAKE fails to break above $1.80, the $1.20–$1.30 range remains the main support zone.

CAKE Burns Surge 37% as AMM V3 Leads

Data from PancakeSwap showed that the platform recorded a CAKE minting loss of -609,000 tokens, worth about $1.05 million, while total product burns reached 762,000 CAKE, valued at $1.32 million.

That represents a 37% weekly increase in burns, signaling a faster reduction in supply across the ecosystem. If the trend continues, it could be more favorable for CAKE’s price performance, though the token still needs stronger price follow-through to align with the burn pace.

🥞 Weekly CAKE Stats

Net CAKE Mint: -609k CAKE (-$1.05M)

Total Product Burns: 762k CAKE ($1.32M) +37% 🔥

Burn Breakdown:

➤ AMM v2: 230k CAKE ($397k) -8%

➤ AMM v3: 489k CAKE ($846k) +90%

➤ AMM Infinity: 12.3k CAKE ($21k) -39%

➤ Other Sources (Prediction, Perpetual, etc.): 31k…

— PancakeSwap (@PancakeSwap) August 25, 2026

🥞 Weekly CAKE Stats Net CAKE Mint: -609k CAKE (-$1.05M) Total Product Burns: 762k CAKE ($1.32M) +37% 🔥 Burn Breakdown: ➤ AMM v2: 230k CAKE ($397k) -8% ➤ AMM v3: 489k CAKE ($846k) +90% ➤ AMM Infinity: 12.3k CAKE ($21k) -39% ➤ Other Sources (Prediction, Perpetual, etc.): 31k…

AMM V3 was the largest contributor to the burn total, burning 489,000 CAKE worth $846,000, a 90% increase. AMM V2 burned 230,000 CAKE worth $397,000, down 8%.

AMM Infinity burned 12,300 CAKE worth $21,000. Other products, including Prediction and Perpetual, contributed 31,000 CAKE worth $53,000, a 9% increase in combined burns.

Despite the bullish pattern and stronger burn activity, CAKE remains in a downward price trend. However, the broader crypto market is improving, and CAKE could see a breakout if current conditions persist. That makes the $1.80 neckline an important short-term reference point, since a move through it would be the first technical confirmation that buyers are regaining control.

What Happens Next?

CAKE may remain volatile as traders wait for a move above the $1.80 neckline. A breakout above that resistance level would strengthen the bullish trend and could push the token toward $2.30.

At the same time, continued token burns may support CAKE’s long-term outlook.