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The long-term target for $CAKE is $10, as it continues to hold the lower support of a long-term price structure on higher timeframes.
$CAKE, the native token of PancakeSwap, is currently trading near a long-standing support zone that has repeatedly acted as a floor over the past two years. Meanwhile, the 1-week chart shows this is part of a larger compression within a broader symmetrical triangle with bullish implications upon breakout.
$CAKE Holds Multi-Year Triangle Support
The recent price structure indicates that $CAKE may be building a base after an extended decline. On the weekly chart, $CAKE trades close to the lower boundary of a symmetrical triangle that has formed since late 2023.
Since the structure started forming in October 2023, the token has recorded a series of lower highs and higher lows. Additionally, the structure has continued to compress slowly, building momentum for a subsequent breakout.
Currently, $CAKE trades near the lower support of this symmetrical triangle. The recent downtrend took the coin to a low of $1.12 in early June before rebounding to its current price of $1.37.
While the possibility of one final decline toward the psychological $1 level remains, such a move could mark a potential final support sweep. This scenario could most likely happen if the broader cryptocurrency market, especially Bitcoin, drops to lower prices.
Meanwhile, holding this $1.12 support paves the way for a rebound to higher prices. The natural target is the upper resistance trendline, where prices have repeatedly faced rejection, currently near $3.40.
$CAKE Breakout Targets $10
In an optimistic scenario where $CAKE eventually breaks above the triangle’s descending resistance line, the target is a strong upsurge to multi-year highs.
The first upside target sits between $3.90 and $4.50, a region that aligns with previous resistance while prices trended within the structure. Notably, this 184% to 228% growth from the current market price could serve as the first take-profit area.
Should bullish momentum continue beyond that level, the next major rally target is between $9 and $10, a 557% to 630% pump from here. This would take the $CAKE token to price levels last seen in April 2022.
Meanwhile, between these two major targets are micro-resistance regions. Specifically, levels at $5.45 and $8.50 are areas of interest, where $CAKE might face mild opposition.
In the meantime, $CAKE continues to face declining futures and spot demand despite its 2% in the past 24 hours. During this period, Coinglass futures flows show that traders are closing more derivative contracts than opening, with inflows at $2.48 million and outflows at $2.82 million.
Spot buyers are also increasingly moving more $CAKE to exchanges than they are withdrawing to self-custody wallets. Coinglass’s spot inflows stand at $853,640 and outflows at $701,170, suggesting increased selling pressure.