PancakeSwap (CAKE) Price Analysis: 44% Spike Defies Market Stagnation

Key Takeaways

• A breakout from a falling wedge signals bullish momentum.
• Price reclaiming 0.618 Fibonacci hints at further upside.
• RSI spikes into overbought territory, suggesting strong demand.
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PancakeSwap (CAKE) shows a notable breakout after completing a corrective pattern.

The daily chart suggests a broader trend shift, while the lower time frame reveals immediate upside potential with key resistance and Fibonacci levels in play.

CAKE Price Analysis

The daily chart of CAKE shows a prolonged downtrend that led to the formation of a descending structure after reaching a peak of $5.17 in March 2024.

The price found a strong base within the green demand zone between $1.50 and $1, forming a corrective structure, most likely an ABC pattern.

After making a higher low above $1.50 on March 10 compared to its previous $1.10 in February, CAKE started impulsively increasing, reclaiming the 0.618 Fibonacci retracement level at approximately $2.60.

This level is crucial as it often dictates trend reversals. The breakout confirms growing buying pressure, further validated by the Relative Strength Index (RSI), which has surged close to the overbought zone, reflecting renewed bullish momentum.

The majority of the increase occurred since today’s opening of $1.78, spiking over 44%.

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The next significant resistance lies around $3.10 (0.5 Fibonacci retracement), a region that has historically been a major rejection zone.

If bulls maintain control, CAKE could extend gains toward the $3.58-$3.88 range, aligning with the 0.382 Fibonacci level.

However, failure to sustain above $2.60 could trigger a retest of the breakout zone at $1.90. Holding this level as new support will be critical for continuing the upward trend.

CAKE Price Prediction

The 1-hour chart provides a closer look at CAKE’s immediate breakout structure. The asset has broken out of a local descending wedge and shows impulsive price action, indicating the beginning of a new bullish wave count.

Wave analysis suggests that CAKE has completed a five-wave sequence to the upside, with Wave (v) reaching a peak near $3.10 before entering a consolidation phase.

A short-term pullback to retest the breakout level at $2.40 (0.5 Fibonacci extension) or even slightly below it could present an opportunity for re-entry.

If bulls defend these levels, the next impulse wave (Wave 3) could target the 1.618 Fibonacci extension at $4.54, aligning with historical resistance. A move above this zone would confirm a broader bullish trend shift, with the next targets extending toward $5.17.

However, failure to hold support above $2.40 could invalidate the bullish outlook, potentially dragging CAKE back toward $1.90.

The RSI on the 1-hour chart is currently elevated, indicating overbought conditions, so a short-term pullback is expected before further upside.

CAKE’s recent breakout signals a potential trend reversal, with Fibonacci retracement levels and Elliott Wave analysis pointing toward further upside.

However, confirmation above key resistance levels remains necessary for sustained bullish momentum.

Key Levels to Watch

• Immediate Resistance: $3.10 (0.5 Fibonacci retracement).
• Key Resistance: $3.58 – $3.88 (0.382 Fibonacci level).
• Major Resistance: $4.54 (1.618 Fibonacci extension).
• Immediate Support: $2.63 (0.618 Fibonacci retracement).
• Key Support: $2.40 (0.5 Fibonacci retracement).
• Critical Support: $1.90 (previous demand zone).
• Short-Term Target: Above $4.50 if momentum sustains.
• Invalidation Zone: Below $1.90, signaling a failed breakout.