CAKE price has broken out of an ascending triangle pattern and is now targeting $4.50 — offering 38% upside potential from the current level.
Summary
- CAKE breakout from ascending triangle pattern confirmed, targeting next resistance at $4.50.
- RSI at 80 signals overbought conditions; short-term pullback to $3.00 likely.
- 20-day EMA offers strong support after recent dip to $2.50; bullish 20EMA-50SMA crossover intact.
- Rally partly driven by PancakeSwap Infinity recent launch on Base chain.
CAKE technical analysis
PancakeSwap (CAKE) price is up 15% in the past 24 hours, currently trading at $3.30, with trading volume surging over 200%. This sharp rise extends the breakout rally that began yesterday, when the price gained 10% and closed decisively above the flat resistance of an ascending triangle pattern.
Since breaking out around $3.00, CAKE price has now gained 10%, and is tracking toward the next key resistance at $4.50, based on the measured move of the ascending triangle pattern. However, the RSI is currently at 80, signaling overbought conditions. A short-term pullback is expected, potentially retesting the breakout level around $3.00.
Should the breakout prove to be a fakeout, the 20-day EMA, which contained the recent dip to $2.50, will likely act as support in case of a deeper retracement. That being said, a continuation looks more likely as the 20EMA-50SMA crossover is intact, with both moving averages trending upward.
What’s driving CAKE price?
The CAKE breakout appears to be technically driven based on the ascending triangle pattern and MA alignment. However, it may have been partially fueled by PancakeSwap Infinity’s launch on the Base chain on July 24, which coincided with a dip in CAKE price to $2.50 before strong buying pressure emerged — ultimately culminating in the current breakout rally.
With PancakeSwap Infinity now live on Base, CAKE gains expanded utility as it’s used for governance, fee incentives, and staking. As PancakeSwap continues to grow across multiple chains, demand for CAKE naturally increases to support its cross-chain functionality. Also, since Base recently reached record highs in TVL and trading volume, CAKE is set to benefit from more users, higher liquidity, and wider adoption in the network.
