- CAKE is testing major resistance for the third time after a long accumulation phase, increasing breakout pressure.
- Prolonged consolidation suggests weaker holders are exiting while stronger participants accumulate near resistance.
- A high-volume breakout from this support could confirm a macro trend shift toward $26 and place CAKE among leading altcoins.
PancakeSwap (CAKE) has been consolidating for several years, allowing weaker positions to exit and stronger participants to accumulate. A sustained move with higher volume could trigger a major breakout, signaling a new phase for CAKE and other altcoins.
At the time of writing, CAKE is trading at $1.85, supported by a 24-hour trading volume of $100.7 million and a market capitalization of $623.28 million. Its price has declined by 9.35% over the last 24 hours and 20.98% over the last week.
Source: CoinMarketCap
Also Read: PancakeSwap CAKE Gains Momentum: Can Bulls Hit $3.19 Next?
CAKE Holds Near $1.85 Support Within Long-Term Range
PancakeSwap (CAKE) is still in a wide range on the weekly chart, having failed to overcome the resistance range of $3.30-3.70 previously. This indicates the presence of very strong selling pressure at that level, and a failure to overcome the range of $3.00-$3.20 has now confirmed it as a significant resistance level, but the price is currently trading close to the lower boundary of the long-term range around $1.85, close to the 0-0.382 Fib support line.
Source: TradingView
Momentum is losing steam with an RSI value below 50, showing bearish dominance but not an oversold market. Above the $1.80-$1.90 levels will carry potential for a pullback to $2.30 and $2.80, while any strong breakthrough will carry risks of reconsolidation and thus render the accumulation scenario invalid.
CAKE Consolidates and Signals Potential Breakout to $26
CAKE, the native token of PancakeSwap, is again under the spotlight as it approaches a crucial level of support for the third time this year. CAKE has been accumulating for almost 3.5 years and has reached the top of its range at the $26 level for the last time this year.
The protracted period of consolidation indicates possible dispersion of weaker positions, providing an opportunity for stronger market participants to accumulate. As the price is pressed close to the zone of resistance, market analysts are keenly observing for any indication of strength, specifically with regard to momentum and volume. The longer CAKE stays in the vicinity of this region with limited strong rejections, the stronger will be the potential for breakout.
Source: X
A strong breakout at this level of support, especially on increased volumes, would indicate a significant shift in the macro structure of CAKE and would push the token toward $26 again. This could indicate that the altcoin has emerged from its extended range and is about to enter into a new phase, where other altcoins that are displaying initial signs of market shift will also fall into place along with CAKE.
Also Read: PancakeSwap (CAKE) Retests Symmetrical Triangle: Could This Trigger a $25 Surge?
