PancakeSwap Surges 35% in price as it nears the 5$ resistance

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Pancakeswap token, CAKE, is trading at $3.5, which is a 35% surge in price in the last 24 hours. This is a result of a 948% increase in trading activity during the same period, bringing its total trading volume to $743 million, with a total market cap of $1.2 billion, according to CoinMarketCap.

CAKE Price action | Source: CoinMarketCap

Looking at the chart, the market has been consolidating between the $5 resistance level and the $1.3 support level, which has created a downward trendline.

However, this surge in price, which started on the 25th of September, is as a result of the price making a third tap into the $1.3 support level on the 3rd of February, causing a series of distribution to the upside between buyers and sellers in the past months.

Cake Technical Analysis | Source: Tradingview

Looking Ahead

Going forward, the momentum being printed shows just how much interest the buyers have in this token. This means that if this continues, we might see a break past the downward trendline with a push towards the $5 resistance or a push further to the $10 zone, creating a 37% and 179% surge, respectively.

CAKE Price prediction | Source: Tradingview

However, if the market fails to break the past the trendline or the 5$ resistance, we might see a push to the downside towards the $1.5 support zone

Notably, when adding indicators like the RSI, which is known for monitoring momentum in the market, it is observed that the price is trading at the 63.73 level, above its EMA line of 54.96. This means that the market is in an uptrend.

CAKE Price Momentum | Source: Tradingview

Meanwhile, market watchers have also shared a bullish outlook on the market. In an X post, analyst Karman_1s noted “$Cake shows a long-term Accumulation phase and anticipates multiple “Expansion” phases with significant future growth.”