PancakeSwap (CAKE) Breaks Trendline, Signals Potential 1,980% Rally

• After breaking its descending trendline PancakeSwap (CAKE) is showing bullish momentum which may lead to steady upward price movements.
• The bullish trajectory of CAKE receives technical support from MACD and RSI indicators that indicate increased momentum for the price breakout.
• Key resistance levels near $1.95 and $2.50 will determine if CAKE sustains its rally, with targets set near $40.794 and beyond.

Technical analysis of PancakeSwap’s CAKE suggests a reversal of its prolonged downtrend. The asset was priced at $1.86 at the time of writing, registering a 14.83% gain. Classic bullish signals, such as higher lows and a trendline breakout, indicate renewed market interest.

Price Action Analysis

CAKE traded in a downtrend from its all-time high while following a descending channel. The coin repeatedly met rejections at the trendline until a decisive breakout occurred. A clear higher low formation emerged after the breakout, signaling that selling pressure is easing. A tweet by Javon Marks stated that CAKE maintained higher lows, supporting a potential bullish leg. He mentioned a possible gain of nearly 171% and a move exceeding 1,980% toward a price near $40.794.

The price action suggests that the coin is shifting from a bearish phase to a more positive setup. The breakout from the descending channel marks a key turning point. The formation of higher lows reinforces the view that buyers are gaining control. Technical charts show that CAKE is testing previous resistance levels.

Technical Indicators Support Reversal

MACD recently crossed above its signal line, indicating an upward shift in momentum. This crossover supports the breakout from the descending channel. RSI recovered from oversold levels near 30 and now steadily approaches the neutral 50 level. These indicators confirm a move toward a more balanced market sentiment. Analysts are watching these signals closely to assess the strength of the emerging trend.

Source : TradingView

The technical indicators align with the price action signals. Both MACD and RSI point to a gradual momentum shift. Their current readings support the view of a potential trend reversal. Investors use these metrics to monitor CAKE’s progress.

Future Price Projections and Key Levels

The chart suggests a possible move toward a target near $40.794, which is 1980% of the current price, with a previous high near $42.75 as a critical resistance level. Immediate resistance appears between $1.95 and $2.10, while mid-term resistance may form between $2.50 and $2.90.

Support levels are observed at $1.50 and within the $1.30 to $1.10 range. Maintaining the higher low formation remains crucial for further gains. Technical signals support the possibility of a sustained bullish phase as CAKE tests key price levels.