• CAKE’s higher lows signal a bullish reversal, with a potential 1,980% surge if the trend holds.
• Breaking resistance and strong support levels suggest CAKE could rally to $40.79, with $8.35 as the next key target.
• Rising volume and positive market sentiment reinforce the bullish outlook, despite a slight bearish MACD signal.

Javon Marks, a well-known market analyst, highlights a bullish outlook for PancakeSwap’s native token, CAKE. The price action forms higher lows, signaling a potential rally. A breakout could result in at least a 171% surge. If the trend holds, the long-term projection targets an astonishing 1,980% gain, pushing CAKE to $40.79.

CAKE Forms Higher Lows, Suggesting Bullish Reversal

CAKE’s price action shows resilience as it establishes higher lows. This formation suggests growing buyer confidence. The price currently trades at $2.55, reflecting a substantial distance from the projected $42.74 target. Historical trends show CAKE previously experienced a steep decline, but a breakout above the descending trendline has shifted market sentiment.

Besides, price consolidation after the breakout confirms strong support. If CAKE maintains this structure, bullish momentum may accelerate. Increased trading volume aligns with major price movements, validating market participation. Buyers have actively defended key levels, preventing further dips.

Moreover, the breakout above resistance marked a shift in market structure. A higher high and a higher low reinforce this positive trend. Hence, if this trajectory holds, a long-term rally could unfold.

Technical Indicators Signal Strong Potential

The technical chart illustrates a descending trendline that previously acted as resistance. However, CAKE’s recent higher lows challenge this bearish dominance. A key support zone has held firm, preventing further declines. Consequently, this price action suggests an imminent breakout.

Additionally, projected price targets indicate upside potential. A short-term target of $8.35 could be the next resistance. However, if bullish momentum sustains, the long-term goal of $40.79 remains plausible. The percentage increase from current levels suggests an extraordinary gain for long-term holders.

The MACD indicator signals a slight bearish trend, but price structure remains bullish. If buying pressure increases, CAKE could surpass resistance and continue its ascent. Furthermore, market sentiment appears to favor accumulation, increasing the likelihood of a sustained rally.

Historical price movements reinforce this outlook. Previous peaks indicate the potential for massive rallies following significant breakouts. If CAKE follows past trends, another major bull run could be underway. The higher low formation serves as a strong confirmation of support.

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