- PancakeSwap’s $CAKE forms a Head and Shoulders pattern and breaks its neckline with high volume, confirming bearish sentiment.
- Total Value Locked on PancakeSwap surpasses $2.5 billion, signaling increased capital inflows despite weak token price action.
- PancakeSwap partners with Brevis to launch zCoprocessor integration, enabling wallet-based rewards and pushing on-chain reputation.
PancakeSwap’s native token, $CAKE, is trading at $3.11 after dropping 3.90% in the last 24 hours and 18.64% over the week. Even as platform activity and zk-tech integration show growing traction bearish technical signals mount.
Bearish Technical Setup on $CAKE
The $CAKE token recently printed a clear Head and Shoulders, a pattern well-known for bearish reversal signals. The neckline support has been decisively broken with a spike in sell volume. This has confirmed the breakdown placing both the 9-period EMA and the 50-period SMA remain above the current price.
                                             Â
The projected target based on the pattern measures a potential price decline toward the $2.80–$2.90 support zone. Traders are seeing a short opportunity or an alert to exit long positions. However, watching for a retest of the neckline is important since false breakdowns can occur.
In the short term, $CAKE is also testing the 50-day EMA around $2.97. Yet, failure to hold this EMA could lead the price to test the 100-day and 200-day EMAs at $2.78 and $2.59, respectively.
PancakeSwap’s Partnership and On-Chain Innovation
Trader 0xdipeth discussed PancakeSwap’s new partnership with Brevis on X platform. This collaboration integrates zero-knowledge (zk) technology to offer dynamic fees and loyalty programs as Brevis’s zCoprocessor analyzes users’ complete on-chain history. This will allow true trading activity to influence rewards.
PancakeSwap users stand to benefit with improved rewards, while Brevis gains exposure.This partnership elevates the concept of on-chain reputation, making wallet history a private but verifiable asset.
This development marks a notable advance in privacy-focused blockchain applications and zk technology moving into mainstream DeFi.The alliance is also seen as a precursor to a possible token generation event (TGE) from Brevis. This collaboration completes PancakeSwap’s ongoing efforts to innovate within the decentralized exchange (DEX) space .
TVL Trends Reflect Growing Confidence Despite Price Weakness
Total Value Locked for PancakeSwap, reveals a different narrative to $CAKE’s price action. It peaked at $7 billion in early 2022 but started a decline through late 2022 and much of 2023,as the broader crypto market weakened due to regulatory concerns.
                                               Â
Recently it surpassed $2.5 billion as of October 2025,showing growing user activity and increased capital inflow into the platform,probably driven by new products, improved yields, or token incentives attracting liquidity back to PancakeSwap.
This rising TVL contrasts with $CAKE’s bearish price movement, indicating that liquidity growth may not yet be reflected in token valuation. The divergence points to capital rotating within the ecosystem or cautious investor sentiment regarding token price sustainability.
