The chart reveals consistent higher lows since mid-January, forming a clear ascending triangle pattern, indicating building bullish pressure.
PancakeSwap (CAKE) has tested the $2.90–$3.00 resistance level multiple times without a breakout, confirming it as a significant technical ceiling.
A successful breakout above the horizontal resistance could push CAKE to the next target around $4.34, marking a potential 52.71% upside.
The native token of PancakeSwap, CAKE, is also approaching a critical technical level after months of range-bound consolidation. Daily chart price action has built a clear ascending triangle pattern that suggests a breakout is imminent. This structure, commonly interpreted as a bullish continuation pattern, is supported by higher lows pushing up against a flat resistance zone.
Source: (X) Technical Formation Signals Impending Move
On June 5, the CAKE price stood at $2.43, losing 0.37% compared to the previous day. Even with the minor decline, the token has continued to go up since the start of 2024. The pattern’s horizontal resistance sits between $2.85 and $2.95 — a zone that has been tested repeatedly since December 2023, as indicated by several price rejections marked on the chart.
The support line, formed from consistent higher lows since January, shows strong buyer interest at increasingly higher price levels. These converging forces typically lead to a breakout once either buyers or sellers gain momentum.
Breakout Target and Market Indicators
If the price successfully breaks above the resistance line with confirmation from volume and broader market sentiment, the technical target points toward the $4.34 level. This marks a projected upside of approximately 52.71%, based on the height of the triangle pattern.
On-chain metrics add context to the technical setup. CAKE’s 24-hour trading volume spiked by 59.37%, reaching $155.84 million — a sign of increasing market activity. However, the market cap remains slightly down at $782.4 million, and the token's FDV (Fully Diluted Valuation) stands at $1.09 billion. The Market Cap to TVL ratio of 0.4365 suggests a relatively balanced valuation.
Market Outlook Hinges on Resistance Test
While the setup favors buyers in the short term, the resistance zone remains a decisive battleground. Failure to break above may lead to another pullback toward the ascending trendline. Traders and analysts are closely watching the $2.95 area for confirmation of the next major price direction.
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