Is CAKE Ready to Explode to New Highs? | Credit: Hameem Sarwar
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Key Takeaways
PancakeSwap (CAKE) trades inside a symmetrical triangle.
CAKE has moved above the long-term resistance at $2.80.
Can CAKE finally break out from its 500-day triangle?
PancakeSwap (CAKE) has been coiling within a symmetrical triangle for nearly 500 days.
Just recently, it pushed above the key $2.80 resistance level, sparking fresh speculation about a long-awaited breakout.
Is this the real deal, or just another false alarm? Let’s take a closer look.
CAKE Price Analysis
CAKE has been stuck inside a symmetrical triangle since bottoming out at $0.15 in October 2023.
Typically, this pattern signals a continuation of the prevailing trend, which has been bearish in CAKE’s case.
That would suggest a potential breakdown is the likeliest outcome.
But so far, the price action is defying expectations.
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In a surprising shift, CAKE has managed to push above the $2.80 resistance zone, a level that had consistently shut down breakout attempts since early 2024.
This marks a potentially pivotal moment in the token’s trend.
Today, CAKE is making a fresh attempt to break out of the triangle’s upper resistance, a trendline that has held strong for more than 500 days.
A confirmed move above this level could signal a major reversal.
If the breakout holds, the next key target lies at $4.90, a horizontal resistance area.
Beyond that, CAKE could move swiftly toward double-digit territory, as the price chart shows little in the way of overhead resistance between $5 and $10.
Momentum indicators give a bullish CAKE prediction, supporting the breakout.
The Relative Strength Index (RSI) is above 50 while the Moving Average Convergence/Divergence (MACD) is positive.
So, despite the triangle’s presence, CAKE’s long-term technical analysis suggests a likely breakout.
Will CAKE Break Out?
The long-term wave count is bearish, showing that CAKE has completed a five-wave decline (red) since its all-time high in April 2021.
While this means that a bullish trend reversal has not started, it does not prevent the CAKE price from being in a corrective bounce that can lead to new highs.
More specifically, CAKE’s price is currently in wave C of an A-B-C corrective structure (green), which will trigger the breakout mentioned before.
Giving waves A and C the same length leads to a high of $5.55, slightly above the primary resistance of $4.90.
Since a breakout could trigger a significant rally, the CAKE price will likely not close above this resistance if the waves have the same length.
On the more bullish scenario, wave C will extend to 1.61 times the length of wave A, reaching a high of $8.26, close to the next important horizontal resistance.
Because of this confluence, the second target and extension are likelier than the more subdued bullish CAKE prediction.
Breakout After 500 Days
While the long-term wave count still leans bearish, the current CAKE price analysis and technical indicators suggest a bullish breakout may be underway.
If CAKE breaks the triangle’s resistance, it could rally toward $4.90 and potentially as high as $8.26, the highest price since 2022.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
