PancakeSwap (CAKE) Eyes Breakout as Bullish Momentum Builds

• CAKE has broken above key moving averages, signaling a potential bullish trend shift.
• The MACD indicator confirms increasing buying momentum, supporting the possibility of a breakout.
• Traders are watching the $2.20–$2.25 level for confirmation of the next price direction.

The price of PancakeSwap (CAKE) demonstrates increasing health as it pushes towards an important resistance threshold. Price movements above essential moving averages along with positive indicators have traders waiting either for a triumphant breakout or a possible retreat.

CAKE Approaches Key Resistance with Strong Momentum

According to Alpha Crypto Signal, CAKE has formed a rounding bottom on the 4-hour chart, signaling a potential trend reversal. The price recently bounced from the lower trendline of a descending channel and is now testing a major resistance level.

Market sentiment remains optimistic, with Binance’s CZ backing the BNB ecosystem. If CAKE successfully flips its resistance, analysts suggest further upside potential. However, a rejection at this level could trigger a retracement to lower support zones.

Technical Indicators Support Bullish Outlook

CAKE has moved above its 50-period Exponential Moving Average (EMA), a bullish signal indicating potential trend strength. The shorter (yellow) and longer (blue) EMAs are sloping upward, reinforcing positive momentum.

A bullish crossover has been confirmed by the MACD indicator since the MACD line exceeded the signal line. Additionally, the histogram remains positive, suggesting increasing buying pressure. If momentum sustains, the probability of a breakout strengthens.

Key Price Levels to Watch

If CAKE breaks above resistance, it could target $2.40 as an initial upside level, followed by a strong resistance zone between $2.80 and $3.00. However, if the price gets rejected, support levels at $1.80–$1.90 could be tested. A deeper pullback might lead to a retest of the lower boundary around $1.20–$1.40.

The cryptocurrency CAKE maintained a price layer of $2.13 with a 7.84% elevation in the last day and a 45.36% surge during the recent week. The market watches the $2.20–$2.25 price area because traders want to confirm the next trend direction.