This Week in Crypto: Layer-2 Protocols Dominate the Market as Other Tokens Plunge

This week, the cryptocurrency market displayed significant divergence, with select tokens posting remarkable gains while others experienced substantial declines.

The cryptocurrency market displayed significant divergence this week, with select tokens posting remarkable gains while others experienced substantial declines. These trends highlight the importance of selective positioning in the current trading environment, as sector-specific momentum continues to drive price action rather than broad market trends.

Top market performers

Four [FORM]: Layer-2 protocol leads the pack

Four (FORM) dominated the crypto markets this week, skyrocketing 54% from $1.20 to $1.85.

The layer-2 smart contract platform staged a remarkable breakout after accumulating at key support levels throughout early March.

This rally kicked off with explosive momentum on the 17th of March, when FORM surged from $1.20 to $1.80 in a single session, immediately capturing market attention.

After a brief pullback to test $1.65 as support, buyers returned in force, pushing the token to a weekly high of $2.05 on the 18th of March.

While profit-taking emerged above the $2.00 psychological level, FORM demonstrated resilience by maintaining most of its gains.

The mid-week consolidation around $1.75 established a healthy base before renewed buying interest appeared on the 20th-21st of March.

Trading volume peaked impressively during the initial surge, suggesting strong conviction behind the move.

The token’s technical structure shows a clear breakout from its multi-month range, with the $1.75 level now representing crucial support.

PancakeSwap [CAKE]: DEX token shows impressive strength

PancakeSwap (CAKE) delivered an impressive performance this week, surging 40% from $1.85 to $2.59.

The Binance Smart Chain’s leading DEX token defied broader market trends, demonstrating exceptional strength as it broke through multiple key resistance levels.

The rally began decisively on the 17th of March, when CAKE exploded from $1.85 to $2.15, breaking above its 50-day moving average at $1.96 for the first time since January.

This technical breakout triggered significant buying interest, with trading volume nearly doubling compared to recent averages.

Source: TradingView

After a brief consolidation around $2.50 mid-week, buyers returned on the 22nd of March, pushing CAKE to test the $2.75 resistance level.

While this zone triggered some profit-taking, the token has maintained most of its gains, finding solid support around the $2.60 mark.

Technical indicators strongly favor continued bullish momentum. The 50-day moving average has begun to curve upward toward the 200-day MA [$2.25], potentially setting up a golden cross formation in the coming weeks.

Additionally, accumulation-distribution patterns show consistent inflows throughout the rally, suggesting institutional interest rather than retail-driven speculation.

The impressive price action comes amid several fundamental developments for the PancakeSwap ecosystem, including enhanced staking rewards, new token listings, and governance proposals aimed at increasing token utility.

These factors have likely contributed to the sustained buying pressure.

For traders looking ahead, CAKE faces immediate resistance at $2.80, with a breakthrough potentially opening the path toward the $3.00 psychological level last seen in December.

On the downside, the newly established support at $2.50-$2.60 should be closely watched for any signs of weakness.

The token’s outperformance in a challenging market environment highlights its potential role as a market leader in the DEX sector as DeFi activity continues to recover.

Hyperliquid [HYPE]: Perpetual exchange token breaks out

Hyperliquid (HYPE) delivered impressive gains this week, climbing 16% from $13.80 to $15.80.

The decentralized perpetual exchange token demonstrated remarkable strength across multiple trading sessions, confirming its breakout from the previous consolidation range.

The rally unfolded in two distinct waves, with HYPE first surging from $13.80 to $15.60 between the 19th and 20th of March before experiencing a pullback to $14.20 as profit-taking emerged.

This retracement proved temporary, with buyers returning forcefully on the 22nd of March, pushing the token to a weekly high of $16.40.

Trading volume spiked significantly during both advances, particularly on the 22nd of March, when volume nearly doubled compared to the weekly average.

This increased participation suggests genuine institutional interest rather than retail-driven speculation.

Technical indicators remain firmly bullish, with HYPE establishing a series of higher lows and higher highs. The $15.50 level now represents key support, with buyers consistently defending this zone during recent pullbacks.

Other notable gainers

Beyond the top performers, the