- CAKE tested its 5-month range high near $2.95 but faced immediate rejection, dropping 5.6% within 11 hours.
- The rapid surge toward $3 attracted sellers; liquidity between $2.85-$3 acted like a price magnet briefly.
PancakeSwap’s CAKE token approached the upper boundary of its established trading band. This band has contained prices between $1.37 and $2.95 for five months. The mid-point of this range sits at $2.16. Recent activity pushed CAKE close to the $3.00 level, a point often watched by traders.
This upward move reached $2.95. However, sellers quickly emerged. CAKE lost 5.6% of its value within 11 hours. This decline followed a rapid 22% increase over just six hours. The speed of the retreat points to strong selling pressure near the top of the range.
The initial surge toward $2.95 can be linked to a nearby liquidity cluster. This liquidity existed between $2.85 and $3.00. Price often moves toward areas with high liquidity. This magnetic quality likely contributed to CAKE’s quick rise. After testing this zone, the price often moves away.
Data on potential liquidations suggests possible paths down. A significant concentration of liquidation points exists between $2.70 and $2.20. Specific levels like $2.61 and $2.28 stand out as potential targets for downward moves. Therefore, the rejection at $2.95 increases the chance of a price drop.
The most probable target for this pullback appears to be the range’s midpoint near $2.16. Minor price increases could occur during this descent. However, the overall direction seems set toward testing lower support levels within its established five-month band.
As of May 28, 2025, PancakeSwap’s native token, CAKE, is trading at approximately $2.69 USD, reflecting a 1.46% decrease over the past 24 hours. Despite this slight dip, CAKE has experienced a notable 40% surge over the past month, reaching a three-month high of $2.80.
The Relative Strength Index (RSI) stands at 44.15, suggesting neutral momentum. The Moving Average Convergence Divergence (MACD) indicator shows a value of 0.023, indicating a potential bullish crossover.
However, other indicators such as the Average Directional Index (ADX) at 27.533 and the Commodity Channel Index (CCI) at -173.6834 point towards a weakening trend.
On-chain metrics indicate that CAKE may still be undervalued, with a Market Value to Realized Value (MVRV) ratio of 28%. This suggests potential for further gains, possibly pushing the price towards the $3.77 to$4.00 range.
