- CAKE broke above a multi year downtrend and key $2.85 resistance, indicating a trend reversal with targets up to $40.79.
- A rising trendline from February to July confirms bullish pattern; short term target at $4.91 with 73% potential gain.
- Volume spikes post breakout show renewed investor interest; further gains depend on sustained momentum and follow through.
PancakeSwap native token CAKE has maintained strong upward momentum after breaking a multi year descending trendline. The breakout, which occurred in early 2024, ended a long stretch of lower highs that had persisted since mid 2021.
The change to a pattern of higher highs and higher lows marked a major trend reversal. Analysts now project a potential move toward the $40 range, based on historical breakout metrics.
Strong Breakout Confirms Bullish Structure
The token’s price hovered near $3.60 at the time of writing, having cleared a major horizontal resistance between $2.80 and $2.85. This zone had been tested multiple times since January 2025, confirming it as a key level. The breakout above this range now sets the stage for further gains, as this area may serve as a new support level.
Below the price, an ascending trendline connects higher lows formed from February through July. This rising trendline reinforces the presence of bullish accumulation and sustained buying pressure. According to World of Charts, CAKE is currently in breakout mode, with near-term projections pointing to $4.91.
Macro Trend Reversal in Play
From its peak near $44 in 2021, CAKE had endured a steep downtrend, forming successive lower highs. That trend decisively ended when price action broke above the descending trendline earlier this year.
Volume spikes accompanying the breakout suggest renewed investor interest and accumulation. The ongoing bullish structure now includes a recent higher low near $1.30, providing strong structural support.
A major technical target remains active at $40.794, implying a potential upside exceeding 1,100% from current levels. Analysts estimate this projection based on the height of the prior trading range and the breakout point.
Key Price Levels and Trader Focus
In addition to the larger macro move, a shorter-term measured move targets $4.91 based on the latest breakout. This move represents a gain of 2.084 points or 73.25% from the breakout area. Traders may monitor this level closely, especially if price successfully retests the $2.85 zone and rebounds.
Volume remains a critical indicator in this context. If the token continues to attract strong buying volume, it may support further upward continuation. Clearing resistance levels between $5 and $7 could further validate this trend and push the token toward long-term targets.
Sustained Strength Supports Long Term Upside
The transition from a prolonged downtrend to a confirmed uptrend aligns with breakout metrics and rising volume activity. The clean breach of horizontal resistance and formation of higher lows reflect strong demand.
With a macro technical target near $40.79 and active short-term projections around $4.91, CAKE’s price action now depends on follow-through momentum and volume continuity.
