Mapping CAKE’s price recovery – What happens if $3 fails again?

Key Takeaways

Will PancakeSwap sustain its upward momentum?

CAKE formed a bullish engulfing candle at the 200 EMA and broke its descending trendline, signaling potential continuation toward $4.5.

Are traders and investors supporting this rebound?

Yes. Spot Taker CVD stayed green, confirming buy dominance, while $1.1 million in outflows reflected strong accumulation.

After a 61.5% price crash in PancakeSwap [CAKE] during the historic crypto crash on the 10th of October, the market has shown a strong rebound, potentially opening the door to a further rally.

The bounce from the $3 support zone aligned with rising trader activity and bullish on-chain data, hinting that a wider rally could be in play.

CAKE’s price momentum returns

CAKE traded at $3.48 at press time, up 25% in 24 hours. Trading volume jumped 155% to $660 million, indicating renewed interest among retail and whale accounts.

AMBCrypto’s technical analysis revealed that this price surge pushed CAKE back above the key support level of $3.

Moreover, on the daily chart, the altcoin formed a strong bullish engulfing candlestick pattern, with the price continuing to maintain its upward momentum.

A break above the descending trendline on the 4-hour chart confirmed momentum shift to buyers.

If the momentum continues and the price holds above the key support of $3, CAKE could see a 28% surge and may reach the $4.50 level.

The Average Directional Index (ADX) stood at 28, signaling a strong trend, while the 200-day EMA ($2.56) acted as firm support.

Expert predictions fuel optimism

Given the market sentiment, several experts surfaced with bold predictions on CAKE.

Crypto commentator CoinQTS projected that CAKE had just begun its journey with huge potential and hinted that it may reach the $20 level in the coming days.

Meanwhile, another expert predicted that CAKE could hit $5 in the coming days.

The Wolf Insight highlighted five catalysts for CAKE’s rally: the Cake.Pad launch for IFO access, 28.8 million CAKE burned in September, $772 billion Q3 volume on BNB Chain (up 87% QoQ), limit-order rewards for liquidity providers, and Binance’s $250K Altcoin Festival exposure.

These factors tightened supply and boosted trading activity on the BNB Chain, suggesting whales are accumulating before retail momentum builds up.

On-chain signal aggressive buying

In addition to these predictions, on-chain metrics further strengthen CAKE’s bullish outlook.

According to CryptoQuant’s Spot Taker CVD (Cumulative Volume Delta), CAKE witnessed aggressive buying activity over the past week, with not a single red bar, indicating a lack of seller dominance.

PancakeSwap (CAKE) strongly bullish derivative

Meanwhile, CoinGlass data recorded a $1.10 million outflow from exchanges in the past 24 hours — a classic signal of accumulation.

As per data, CAKE’s major liquidation levels stood at $3.273 on the lower side and $3.567 on the upper side. At these levels, traders built $2.09 million worth of long positions and $915.3k worth of short positions.

That alignment between spot outflows and derivative positions supports a short-term bullish bias.