PancakeSwap (CAKE) Price Drops Despite Pancake Day, $1.60 Support at Risk

Key Takeaways

• PancakeSwap (CAKE) trades inside the $1.60 support area.
• The CAKE price has retraced all of its February gains.
• Can CAKE bounce at the $1.60 area, or is a breakdown inevitable?
• Interested in buying or selling PANCAKESWAP CAKE coin? Read our review of the best exchanges to buy and sell PANCAKESWAP CAKE.

PancakeSwap (CAKE) has not performed well in the current market cycle, creating lower highs since March 2024.

The CAKE price surged at the beginning of February, aided by a similar increase in interest for its Decentralized Exchange (DEX). However, the rally proved short-lived, and CAKE risks a breakdown below key support.

Since the PancakeSwap price trades inside this key support area and today is Pancake Day , let’s look at the charts and see if a breakdown is inevitable.

CAKE Returns to Support

The weekly time frame chart shows that CAKE has traded in a range between $1.60 and $3 since the start of the bullish cycle in October 2023. While CAKE deviated above this range, it could not sustain the increase and eventually returned inside it.

More recently, a surge in February took the CAKE price above the range high. That created a long upper wick and has been succeeded by three bearish weekly candlesticks.

Currently, CAKE trades inside the $1.60 support area.

Technical indicators are bearish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are falling. The RSI is below 50, while the MACD is below 0.

The weekly time frame suggests a CAKE breakdown is likely. If that happens, the next support will be near the all-time low of $0.35.

New Lows Incoming

The 2-day time frame supports the bearish prediction from the weekly one. According to it, the CAKE price started a five-wave downward movement (black) in December 2024. Afterward, it completed an upward A-B-C structure and started another decline.

Thus, it is likely in wave three of a longer-term five-wave downward movement (red), which will cause a breakdown from the $1.60 horizontal support area.

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If the count is accurate, CAKE could bounce in the short term but will soon begin the most rapid portion of the downward movement, which is sub-wave three of wave three.

The RSI and MACD support this outlook since the former has fallen below 50 while the latter has made a bearish cross (black circle) in negative territory.

Alternatively, a breakout from the descending resistance trend line will mean the decline is corrective, and the CAKE price will move to its range high of $3 again. This currently seems unlikely.

PancakeSwap Price Breakdown

The long- and short-term CAKE analysis is bearish. CAKE will likely break down from the $1.60 horizontal support area, catalyzing a downward movement that could take it as low as $0.35.