- CAKE surges 33%, breaking a key trendline and signaling a bullish reversal with strong buying momentum.
- The price surpassed the $2.10 resistance, confirming an uptrend shift with strong volume and investor confidence.
- Technicals show sustained bullish momentum, with rising support levels and increased volatility highlighting market strength.
PancakeSwap’s native token, CAKE, has risen 33% after it broke above a major descending trendline per Crypto analyst CryptoBull. The price rose from $1.65 to $2.20, indicating a powerful bullish reversal. The breakout was also strongly momentum, indicating there was increasing buying pressure. CZ highlighted PancakeSwap’s potential on X, driving additional interest in the number one decentralized exchange (DEX) on the Binance Smart Chain (BSC).
Breakout and Market Structure Shift
The breakout pushed CAKE above a key resistance zone at $2.10, which briefly held before being surpassed. The move indicated a shift from a downtrend to an uptrend. Buyers took control, reinforcing a bullish outlook. The price climbed rapidly after breaking the descending trendline, without significant pullbacks.
Additionally, the volume profile showed strong participation, confirming the strength of the upward movement. The surge indicated renewed investor confidence, as demand outpaced supply at higher levels. If momentum continues, the next key resistance level sits near $3.14, based on historical price action.
Technical Indicators Confirm Bullish Trend
The latest spike is CAKE’s highest point in weeks. On the Binance chart, the token ended at $2.588, up 45.31%. Price volatility was high, ranging from $1.779 to $2.691. Bollinger Bands showed price action breaking above the top band, signaling increased buying pressure. The 20-day simple moving average at $1.812 served as dynamic support, supporting the bullish sentiment.
Moreover, the volume spiked to 86.76 million, confirming strong market engagement. The Average True Range (ATR) of 0.251 confirmed rising volatility. The trend gained strength as price action formed higher highs and higher lows, confirming a sustainable bullish setup. The moving average confirms the continuity of the trend.
