PancakeSwap (CAKE) Retests Symmetrical Triangle: Is a $25 Surge Imminent?

CAKE's symmetrical triangle retest has traders on high alert. The pattern's resolution could dictate the token's next major move.

Decoding the Pattern

A symmetrical triangle represents a consolidation phase where bulls and bears reach an equilibrium. The converging trendlines squeeze volatility until a decisive breakout occurs. For CAKE, this compression has been building, setting the stage for a potential explosive move. The $25 price target isn't plucked from thin air—it's a technical projection based on the pattern's measured move.

Market Mechanics at Play

Breakouts from these patterns often gain momentum from a simple market truth: pent-up energy gets released. A clean break above the upper trendline, accompanied by rising volume, could see algorithms and momentum traders pile in, fueling the rally. Conversely, a breakdown would invalidate the bullish thesis and likely trigger stop-loss cascades. It's a high-stakes technical standoff, the kind that separates reactive traders from strategic ones—or as some in traditional finance might scoff, 'advanced chart reading for digital lottery tickets.'

The Final Catalyst

All eyes are on the candlestick close. Will CAKE muster the buying pressure to punch through resistance? The chart has drawn the battle lines; now the market's order flow decides the winner. One thing's certain: the triangle won't hold forever. Prepare for volatility.

CAKE Technicals Suggests a Cooling Phase

The weekly chart for CAKE shows significant bearish pressure, with the price dropping below the $2.6777 20-period SMA. The price is challenging the lower Bollinger Band at $2.0592, reflecting the sharp loss of value seen in the current large red candlestick. This move confirms a short-term bearish trend following its high NEAR $3.50 earlier in the year.

Source: TradingView

The technical indicators support this bearish outlook, as the RSI is now in neutral to bearish territory at 45.39, indicating falling momentum. Furthermore, the MACD has registered a bearish crossover, with the MACD line falling below the signal line. The MACD histogram bars are also negative at -0.08323, reinforcing the strong downward momentum.

CAKE Symmetrical Triangle Could Spark Rally to $25

Moreover, the crypto analyst, Jonathan Carter, highlighted that PancakeSwap’s CAKE token is gaining new interest in completing the important retest of the long-term symmetrical triangle breakout on the weekly chart.

A retest of the former levels of resistance, now being perceived as new support levels, is a healthy sign of a structural reset. This point in the chart pattern signals a critical retracement point in determining the strength of the breakout.

The symmetrical triangle pattern serves as an indicator of months of compressed price movements. The breakout in CAKE demonstrates a change in market dominance in favor of the buyer. A successful retest accompanied by the advancement of the volume WOULD further improve the prospects of a bullish scenario. This period is commonly known as the second-entry approach of strategic investors.

Source: Jonathan Carter

If the pattern holds true, the following progression of targets to the upside has been identified. The next target of resistance for the CAKE token comes at $4.50. After that comes a significant psychological level of $10. A complete pattern breakout may even push the token to reach $25.

Also Read: PancakeSwap CAKE Gains Momentum: Can Bulls Hit $3.19 Next?