- CAKE is nearing a critical retest of a symmetrical triangle pattern, offering an opportunity for strategic investors.
- Technical indicators like RSI and MACD show weakening momentum, suggesting the bearish phase could persist.
- Key resistance levels are set at $4.50 and $10, with a potential upward target of $25 if the breakout holds.
PancakeSwap (CAKE) is moving in a bearish phase with the slight decline in its value, in line with bearish market conditions. The CAKE price has declined by 1.69% over the last 24 hours and 3.15% over the last week.
At the time of writing, CAKE is trading at $2.27, supported by a 24-hour trading volume of $43.42 million, marking a slight dip of 5.05% over the past day. Moreover, its market capitalization stands at $766.32 million, placing the token among the market’s top performers.
Source: CoinMarketCap
Also Read: PancakeSwap (CAKE) Shows Strong DEX Growth Despite Short-Term Price Pressure
CAKE Technicals Suggests a Cooling Phase
The weekly chart for CAKE shows significant bearish pressure, with the price dropping below the $2.6777 20-period SMA. The price is challenging the lower Bollinger Band at $2.0592, reflecting the sharp loss of value seen in the current large red candlestick. This move confirms a short-term bearish trend following its high near $3.50 earlier in the year.
Source: TradingView
The technical indicators support this bearish outlook, as the RSI is now in neutral to bearish territory at 45.39, indicating falling momentum. Furthermore, the MACD has registered a bearish crossover, with the MACD line falling below the signal line. The MACD histogram bars are also negative at -0.08323, reinforcing the strong downward momentum.
CAKE Symmetrical Triangle Could Spark Rally to $25
Moreover, the crypto analyst, Jonathan Carter, highlighted that PancakeSwap’s CAKE token is gaining new interest in completing the important retest of the long-term symmetrical triangle breakout on the weekly chart.
A retest of the former levels of resistance, now being perceived as new support levels, is a healthy sign of a structural reset. This point in the chart pattern signals a critical retracement point in determining the strength of the breakout.
The symmetrical triangle pattern serves as an indicator of months of compressed price movements. The breakout in CAKE demonstrates a change in market dominance in favor of the buyer. A successful retest accompanied by the advancement of the volume would further improve the prospects of a bullish scenario. This period is commonly known as the second-entry approach of strategic investors.
Source: Jonathan Carter
If the pattern holds true, the following progression of targets to the upside has been identified. The next target of resistance for the CAKE token comes at $4.50. After that comes a significant psychological level of $10. A complete pattern breakout may even push the token to reach $25.
Also Read: PancakeSwap CAKE Gains Momentum: Can Bulls Hit $3.19 Next?
