TLDR:

• CAKE trades above a critical accumulation zone after recovering from a 96% decline from its ATH.
• A liquidity sweep and reclaim of support have strengthened the bullish market structure outlook.
• Market capitalization rebounded from $430M to nearly $500M, signaling renewed investor interest.
• Traders are watching resistance closely as targets at $3.45, $9.77, and $25.44 remain in focus.

CAKE PancakeSwap has rebounded from a prolonged downturn and reclaimed key support levels. Traders are now monitoring a tightening market structure, growing capital inflows, and a potential breakout that could shape the token’s next major move.

CAKE Holds Critical Support as Bullish Structure Develops

The CAKE token is trading near $1.55 after successfully reclaiming a major weekly support zone between $1.18 and $1.37.

This area has emerged as a significant accumulation region, with buyers repeatedly stepping in to defend prices during recent market weakness.

A widely shared chart on X points to a liquidity sweep beneath support, followed by a strong recovery. Such moves are often viewed as bear traps, where sellers push prices lower before demand quickly absorbs available supply. The subsequent reclaim has strengthened attention around the current setup.

Another key feature is the multi-year ascending trendline that has remained intact since 2022. Despite several tests over the past market cycle, the structure continues to attract buying interest. The latest reaction from this trendline suggests long-term participants remain active within the current range.

The analysis also notes that CAKE has already endured a correction of roughly 96% from its all-time high. Historically, assets that survive such drawdowns often enter lengthy re-accumulation phases before establishing a new trend. For now, maintaining support above $1.15 remains essential for preserving the current market structure.

Market Cap Recovery Supports Breakout Narrative

Beyond price action, CAKE’s market capitalization has begun showing signs of improvement. The seven-day chart reveals a recovery from the $430 million region, with valuation recently climbing toward the $500 million mark.

The advance followed a period of consolidation that prevented new lows from forming. Instead, market capitalization established a stable base between $430 million and $445 million before moving higher. This pattern has drawn attention from traders looking for evidence of renewed demand.

Volume activity also increased during the recovery phase. Rising participation alongside market capitalization growth is often viewed as a constructive development, especially after extended periods of weakness. The move above the $475 million area further reinforced the improving market conditions.

According to the shared chart, upside targets remain positioned at $3.45, $9.77, and $25.44 if a breakout materializes. The longer-term $50 projection remains dependent on sustained ecosystem growth and broader market strength, though traders continue to monitor the setup closely.

TLDR:

• The Cardano Summit 2026 was canceled after the treasury vote reached only 65.21%, missing the 66.67% supermajority required.
• A revised 7.8M ADA proposal replaced an original 14.07M ADA request, adding audited fund management and milestone-gated payments.
• Despite 135 DReps voting in favor versus 61 against, stake-weighted rules prevented the summit proposal from passing.
• EMURGO’s TOKEN2049 Platinum Sponsorship proposal passed separately, keeping Cardano present at the Singapore crypto conference.

The Cardano Foundation confirmed the cancellation of Cardano Summit 2026 after a treasury funding vote narrowly missed the required two-thirds approval threshold.

A revised proposal requesting 7.8 million ADA, worth approximately $2 million, received 65.21% support from delegated representatives (DReps).

This fell short of the 66.67% supermajority required for treasury withdrawals under Cardano’s governance rules. The Foundation stated it would begin winding down summit execution following the vote’s expiration on May 29.

Treasury Vote Falls Short Despite Strong Headcount Support

The vote drew majority backing by delegate count, with 135 DReps voting in favor and 61 against. An additional 24 delegates abstained, and the Constitutional Committee approved the measure.

However, Cardano’s governance framework weighs stake rather than headcount alone for treasury actions. That distinction proved decisive, as the proposal expired without ratification.

The Foundation had already significantly revised the original request before the final vote. An earlier proposal had sought 14.07 million ADA, approximately $3.66 million, bundling the summit with an EMURGO-run TOKEN2049 sponsorship.

The two events were later separated, and the summit budget was trimmed by more than 20%. The revised plan also included audited fund management, milestone-gated payments, and an independent oversight committee.

Cardano founder Charles Hoskinson and Foundation CEO Frederik Gregaard each publicly urged DReps to approve the revised proposal before voting closed.

Despite their late endorsements, the stake-weighted outcome did not cross the required threshold. The Foundation itself abstained from voting on the summit proposal to avoid influencing the result.

The Foundation acknowledged the community’s engagement following the outcome. “Governance requires not only participation, but also a commitment to accept collective decisions,” it wrote on X. It also noted it had reviewed all feedback submitted by DReps throughout the process.

EMURGO’s TOKEN2049 Proposal Passes as Treasury Scrutiny Continues

While the summit vote failed, EMURGO’s separate TOKEN2049 Platinum Sponsorship proposal successfully passed.

The Cardano Foundation voted in favor of that proposal. As a result, Cardano will maintain a presence at the major Singapore crypto conference despite the summit cancellation.

The Foundation stated it will now review current commitments and move forward with winding down summit-related execution. It confirmed that its broader roadmap and operational focus remain unchanged. Work tied to the Cardano ecosystem will continue under that direction.

The summit cancellation is part of a wider pattern of treasury scrutiny in 2026. DReps have pushed back on multiple spending proposals connected to Hoskinson, EMURGO, and Input Output Global this year.

A scaled-back IO funding package tied to the Leios mainnet development was among the proposals that faced resistance.

The outcome reflects how Cardano’s decentralized governance structure places spending decisions firmly in the hands of its delegate community, regardless of organizational backing.

TLDR:

• Stellar Lumens (XLM) breaks multi-year trendline as weekly structure shifts into bullish phase.
• RSI rises above long-term resistance, confirming momentum alignment with the price breakout move.
• Key support at 0.2263 and resistance at 0.2730 define XLM’s short-term trading range.
• MACD strength and overbought RSI signal volatility risk after a sharp weekly rally expansion.

Stellar Lumens (XLM) is showing a notable shift in market structure after breaking a multi-year resistance trendline, as traders reassess momentum, volatility, and key price levels shaping its short-term and long-term direction across broader crypto market conditions today phase unfolding

Breakout Structure and Trendline Reversal

Stellar Lumens (XLM) has confirmed a breakout above its long-standing descending trendline on the weekly chart, marking a structural shift that traders have monitored across multiple market cycles.

The move follows repeated rejection phases where the price failed to sustain gains under persistent seller pressure at the same resistance zone. 

Recent weekly candles show stronger bullish engagement, supported by volume expansion that suggests absorption of supply near critical levels.

RSI movement above multi-year resistance further confirms momentum alignment, as the indicator approaches mid-to-overbought territory while price holds structure. 

Market structure now reflects a transition from prolonged accumulation into early markup conditions across higher timeframes.

Traders note that the breakout zone has acted as a multi-year ceiling, where liquidity has repeatedly concentrated during prior rejection phases. 

With the trendline now breached, attention shifts toward whether the price can maintain weekly closes above this level without reversal pressure.

Volume data across exchanges reflects increasing participation, suggesting that buyers are gradually gaining control in the current structure. 

Earlier consolidation near lower support zones created a base that has supported the recent upward expansion. Market participants are monitoring whether momentum can extend beyond historical resistance without losing weekly structure integrity. 

Volatility Expansion and Key Price Levels

Following the breakout, Stellar Lumens (XLM) experienced sharp volatility, with intraday movements reflecting rapid shifts in sentiment.

Price action showed a 17 percent correction after a strong weekly rally that previously pushed momentum to new highs. 

Despite the pullback, weekly performance remained positive, supported by elevated trading volume across major exchanges. Support at 0.2263 has become a key level, with traders closely watching for sustained defense of this zone. 

Resistance near 0.2730 defines the upper boundary of the current short-term trading range. If price breaks above resistance, momentum could extend toward higher targets established on prior chart structures. 

Conversely, failure to hold support may expose lower demand zones that previously absorbed selling pressure. MACD indicators have turned positive, showing early signs of trend strengthening on daily timeframes. 

At the same time, RSI has moved above 70, placing Stellar Lumens (XLM) in overbought conditions. Such readings often align with heightened volatility and potential consolidation phases in the near term. 

Last month, Rep. French Hill, who chairs the House Financial Services Committee, told CoinDesk that he expected the Clarity Act to secure bipartisan consensus, that tokenization was the next major agenda item and that crypto would continue to receive bipartisan support.

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The narrative

After stablecoins and market structure, tokenization is the next major focus for the House Financial Services Committee, Chairman French Hill told CoinDesk last month.

Why it matters

The House Financial Services Committee is one of the few groups in Congress with direct oversight over federal regulators working on digital asset policy. It played a key role in advancing both the stablecoin-focused GENIUS Act and the market structure-focused Clarity Act. Hill has run the committee since former Chairman Patrick McHenry retired from Congress.

Breaking it down

The House of Representatives found a way to get bipartisan agreement on stablecoin sales practices, decentralized finance and ethics rules before passing its version of the Clarity Act, Hill said.

“These are all things we dealt with in the House bill successfully and got 78 Democratic votes in the House last year,” he said. “So I don’t see any reason why they can’t find consensus in the Senate on the House bill.”

Hill spoke to CoinDesk at the Digital Assets and Emerging Tech Policy Summit hosted by Vanderbilt University and the Blockchain Association in early April about a range of issues his committee is examining.

He said the Senate counterpart to the House’s bill had begun adopting some of the House version’s details as lawmakers negotiated aspects of the legislation ahead of this month’s Senate Banking Committee markup.

“I think the Senate’s relied quite a bit on the House work on both FIT21 [the Financial Innovation and Technology for the 21st Century Act] from the previous Congress and Clarity in this Congress,” he said in April. “I think you see that quite clearly in the Senate Agriculture markup, I think you see that in the basic draft of many of the components in the Senate bill.”

Senate negotiators have kept their House counterparts “apprised of the process,” he said, adding that both he and Rep. Bryan Steil, who chairs the House Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence, have been in touch with senators working on the Clarity Act.

His committee is now looking at other issues, like tokenization and lawmakers’ role in that area, he said. The Financial Services Committee held a hearing on tokenization in late March, which Hill said was aimed at helping lawmakers consider what the Securities and Exchange Commission (SEC) and bank regulators might need in terms of additional authorities or rules to facilitate companies engaging in tokenizing real-world assets.

Part of this effort is determining whether there even needs to be a legislative effort, or if policymaking could remain at the regulator level, he said.

“Tokenization of an asset, such as a common stock, is really an exercise in changing systems,” he said. “It’s not changing the law. All the legal or regulatory requirements about common stock are also applied to a common stock token, right? And so in our view, that’s why these hearings bring up member awareness.”

The House and Senate, as overseers of the regulatory agencies, can, for example, use hearings to ask how existing systems can be adopted to blockchain-based systems, he said.

In a similar vein, Hill said he was looking at the possible tokenization of deposits in the commercial banking industry, which could enable direct debit payments without needing an intermediated stop.

This isn’t necessarily imminent, but it is an area that his committee may explore, he said.

“You think about going from call-out markets right to paper-based markets to digitization of that paper-based system, which took place in the 1970s and 1980s, and that’s increased accuracy, reduced fraud, increased speed, decreased the need for liquidity [and] improved settlement,” he said. “We went from T+5 on equities in the 1970s to T+1. So to me, this is an operating decision, and the interoperability of it is the biggest challenge, not the mechanical, technical aspect of doing it.”

Tokenized markets will, therefore, need work on interoperability and compliance, he said.

“We’ll find out if there needs to be some, you know, legislative activity versus purely regulatory, and that’s good. That’s what Congress’s job is,” he said.

The other major topic he’s tracking — at least in the crypto world — is the effort to update tax regulations around digital assets, he said. The House Ways and Means Committee is already working on tax issues, and a bipartisan group of lawmakers reintroduced a bill specifically targeting crypto taxes earlier this month.

And of course, there will be an election later this year that will determine control of the House of Representatives and Senate. The crypto industry is, as it was in 2024, heavily engaged in primary races, trying to bolster candidates that the various political action committees see as being friendly toward crypto.

Hill said the Financial Services Committee in particular has long been engaged in digital assets, referencing work by former Rep. Patrick McHenry and his Democratic counterpart, Rep. Maxine Waters, over the past 10 years.

“In the past four years, we’ve seen the digital assets ecosystem really engage, not only on policy points, but also politically,” Hill said. “And you saw that in the 2024 election … So I anticipate that the digital assets ecosystem, political activity will be important to the 2026 election. It’s bipartisan. It’s supportive of people who are pro-innovation.”

Hill said the industry’s political engagement in this year’s vote is important, and that there is already bipartisan appetite for crypto.

“If we’re successful in GENIUS rulemaking, and we’re successful in passing Clarity, you’ll commence about a 12-month joint rulemaking process between the CFTC and SEC,” Hill said. “And I really think policy attention will track back into the regulatory agencies to try to make sure that our vision in the House of an integrated, common, fit-for-purpose approach is absolutely implemented.”

Thursday

• 14:00 UTC (10 a.m. ET) The House Financial Services Committee will hold an oversight hearing with federal bank regulators.

If you’ve got thoughts or questions on what I should discuss next week or any other feedback you’d like to share, feel free to email me at nik@coindesk.com or find me on Bluesky @nikhileshde.bsky.social.

You can also join the group conversation on Telegram.

See ya’ll next week!

Kraken said late Friday that it expects to launch CFTC-regulated perpetual futures contracts in the US in the next 30 days, hours after the US Commodity Futures Trading Commission approved the instruments.

The exchange said when it gains approval, the contracts will be listed on Bitnomial Exchange, a CFTC-regulated exchange recently acquired by Kraken’s parent company, Payward.

Payward said on April 17 that it was acquiring crypto derivatives platform Bitnomial for as much as $550 million, aimed at providing Kraken Pro customers with access to Bitnomial’s perpetual futures offering.

However, while Kraken’s announcement said that a filing had been submitted on Friday, no filing for a specific Bitcoin (BTC) perpetual contact was found among Bitnomial’s recent CFTC filings as of Sunday morning. “Today’s announcement sets in motion plans to bring that activity onshore through a CFTC-regulated venue,” the announcement said.

“US clients will soon be able to trade perpetual futures on @KrakenPro,” read a company social media post on Saturday.

Source: Kraken on X.com

Requests for further information on the filing sent to two Kraken executives and Bitnomial’s chief regulatory officer were not immediately answered.

To be sure, companies frequently file requests for confidential treatment of their applications. KalshiEX, which on Friday gained CFTC approval of trading of a BTC perpetual futures contract, had originally requested confidential treatment of that application in an undated letter to the CFTC.

Related: CFTC seeks to reverse settlement deal with Gemini

Race is on to gain perps lead in regulated US market

Shortly after the CFTC approved BTC perp contracts on Friday morning, Coinbase Financial Markets was fast out of the blocks to offer US institutional clients access to global crypto options and perpetual futures markets through a regulated futures commission merchant, Deribit.

Deribit, which Coinbase acquired in August 2025 as part of its expansion into crypto derivatives, is the largest crypto options exchange by open interest. 

CFTC approval notice for BTC perpetuals trading on Kalshi. Source: CFTC

The US Securities and Exchange Commission and CFTC said in September they would explore ways to bring perpetual futures trading onshore. In a joint statement, the agencies said perpetual contracts had been largely confined to offshore crypto markets due to regulatory and jurisdictional constraints.

CFTC chair Michael Selig said on Friday “In my view, the question was never whether crypto asset perpetual contracts would exist. Instead, the question was whether they would exist under American oversight, American standards and American rule of law.”

Also on Friday, CFTC staff issued guidance on 24/7 trading, clearing and settlement, saying crypto asset derivatives may be particularly well suited to round-the-clock markets.

Magazine: HYPE chases $100 target, ETH could dump below $1800: Market Moves

TLDR:

• USDT supply fell as large redemption waves removed over $1.2B from circulation in 24 hours.
• Market cap changes reflect minting and burning cycles tied to stablecoin demand flows data.
• Chain swaps and treasury transfers can distort short-term USDT supply readings across networks.
• Liquidity trends in stablecoin markets often act as early indicators of crypto capital rotation.

$USDT minting and redemption flows drive stablecoin liquidity across exchanges and institutional desks, with recent data showing a sharp contraction following large-scale redemption activity in short-term markets.

Liquidity Rotation and $1.2B Supply Contraction Signal

The recent $1.2B reduction in USDT Market Cap reflects a concentrated redemption wave across major trading platforms.

This movement indicates that large holders converted stablecoins into fiat, reducing circulating liquidity across the ecosystem.

Such behavior is often associated with risk-off positioning and capital preservation strategies among institutional participants.

Exchange data shows that redemption clusters occurred within a compressed 24-hour window across multiple wallets.

Stablecoin supply contraction of this scale often signals temporary liquidity tightening rather than structural weakness.

However, interpretation requires context because chain swaps can distort apparent supply changes without affecting net issuance.

Tether’s mint and burn mechanism ensures that the circulating supply always reflects real demand across markets. Therefore, short-term declines do not necessarily imply sustained capital exit from digital asset markets.

Analysts emphasize monitoring multi-day supply trends instead of isolated snapshots to avoid misleading conclusions.

Broader liquidity cycles often align with macroeconomic sentiment, exchange inflows, and derivative market positioning shifts.

These interconnected factors collectively shape how the $USDT Market Cap evolves across different market phases. Market participants continue to treat stablecoin supply as a proxy for crypto liquidity conditions globally.

This metric is widely observed across exchanges, research desks, and institutional analytics platforms for decision-making. Recent contraction remains within the normal volatility range of circulating stablecoin supply cycles.

USDT Supply Mechanics and Market Cap Adjustments

$USDT Market Cap is determined entirely by circulating supply changes rather than price fluctuations across trading venues globally.

When institutional demand rises, Tether issues new tokens through minting processes backed by equivalent dollar reserves deposits.

This expansion increases liquidity available across exchanges, often correlating with higher trading activity and capital inflows. Such movements are recorded on-chain and reflected in real-time market capitalization tracking dashboards across ecosystems.

Redemption events reduce the USDT Market Cap when holders return tokens to Tether for fiat settlement processing.

This process permanently removes tokens from circulation, creating a measurable contraction in total stablecoin supply across networks.

Such reductions often occur during risk-off sentiment when investors rotate capital from crypto into cash positions.

Chain-level data confirms these burns as verifiable supply adjustments across blockchain records and issuance ledgers.

Market observers track these flows to assess liquidity tightening within stablecoin ecosystems over defined reporting periods.

Short-term volatility in reported supply figures may also stem from operational wallet movements across custodial systems.

These transfers do not always indicate actual market exits but rather internal treasury allocation adjustments. Distinguishing between real redemption and internal transfers is essential for the accurate interpretation of the $USDT Market Cap trends.

Bitcoin (BTC) circled $73,500 on Sunday as bulls stared down 3% BTC price losses for May.

Key points:

• Bitcoin looks set to end May “in the red” as the monthly candle close nears.
• US labor-market data will form the key volatility catalyst for risk assets next week.
• Bitcoin analysis says that $73,000 is the key line to watch for the monthly close.

Bitcoin eyes “red” May ahead of key US PMI data

Data from TradingView followed a quiet weekend for BTC/USD, which remained wedged under 2025 yearly lows.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

US stocks finished the week with new all-time highs, but Bitcoin failed to catch a tailwind from easing geopolitical tensions, notably progress on a US-Iran ceasefire.

Commenting on X, trading resource The Kobeissi Letter quoted US President Donald Trump as saying that he was “in no hurry” to get an Iran deal finalized.

Looking ahead, it added, the coming week would be “all about the labor market,” with US employment data forming a potential source of crypto and risk-asset volatility.

That would include the May print of the Institute for Supply Management (ISM) Manufacturing Purchasing Managers’ Index (PMI) — a yardstick for economic output that offered BTC price action some relief in recent months.

“If bitcoin still continues to follow growth & risk appetite, it needs to reprice higher from here IMO,” Andre Dragosch, European head of research at crypto asset manager Bitwise, argued on X following recent PMI data.

US manufacturing PMI data (screenshot). Source: ISM

Analyst hopes for BTC price monthly close above $73,000

With BTC/USD down by just over 3% month-to-date, per data from CoinGlass, traders were mostly unimpressed.

Related: Bitcoin analysis eyes sharp rebound after BTC collapses below M2 supply ‘fair value’

BTC/USD monthly returns (screenshot). Source: CoinGlass

“At the moment, the $BTC retest of $73k has been successful despite recent downside volatility,” trader and analyst Rekt Capital wrote in his latest X analysis.

“If Bitcoin manages to Weekly Close above $73k then price will be one step closer to confirming the Double Bottom breakout & be positioned to try to trend continue.”

Rekt Capital referred to a “W”-shaped bottom formation on the weekly chart that formed from late February onward.

BTC/USD one-week chart with double bottom. Source: Cointelegraph/TradingView

With various key trend lines nearby, trader Daan Crypto Trades saw the macro range staying in play for the foreseeable future.

“$BTC Trading at its bull market support band after a failed retest the past few weeks. The Weekly 200MA & EMA are still moving up and closing in on price as well,” he told X followers. 

“With all these big high timeframe weekly levels around this area, I would not be surprised to see us trade between $60K-$80K for quite a while.”

BTC/USD one-week chart. Source: Daan Crypto Trades/X

As Cointelegraph reported, the price was no longer due short-term targets formed by “gaps” in CME Group’s Bitcoin futures, with these now trading 24 hours per day.