#CAKE Pancake Swap (CAKE) rally targets $3 after breaking a key level Key points: Pancake Swap exceeded $100 billion in monthly trading volume. CAKE trading volumes surged in the last two days following the news. CAKE needs to stay above $2.5 to continue the rally. Cake is facing strong selling pressure around $3. So, what now? The price has retraced after reaching $2.95. As the chart shows, there is strong selling pressure at these levels or around them, making the $3 target much more achievable as it is likely to be retested at some point. However, the market has already shown strong selling at this level, so bulls may decide to take some profits off the table and gather the necessary liquidity to retest it later. The bullish structure of the token remains intact, and a new 'floor' in the uptrend has now been established. Consequently, the key support to watch over the next couple of days will be the $2.5 level. The Relative Strength Index (RSI) has risen to overbought levels, which already indicates that the trend is quite strong. As the price approaches the $3 area, traders can expect significant volatility when CAKE reaches this level. If the bulls manage to break through, it could lead to a significant rise, possibly up to the $4 area, as this breakout could trigger massive compression. Key areas to watch for CAKE: Moving to a lower time frame, we see that the rally began to fade after reaching this key resistance area around $2.9. For now, as long as the second-best higher high ($2.5) is held, CAKE's outlook will remain optimistic. In fact, today's American session may attempt to push again towards the $3 level to see if they can unlock additional liquidity by triggering a large volume of stop orders. A sign of exhaustion at this stage would be a bearish crossover between the 9- and 21-period exponential moving averages (EMA) along with a declining Relative Strength Index (RSI), which is already happening. There is also a significant fair value gap (FVG) at the $2.5 level. Thus, combined with the psychological importance of this price level and its position as the next key support area to watch, this will be the most likely landing zone for CAKE in the event of a pullback.