PancakeSwap (CAKE) rallied sharply toward $1.565 in mid-April, but persistent selling pressure capped each breakout attempt. The second rejection reinforced a distribution pattern, signaling that the most important participants were getting rid of their positions.
However, the price weakened throughout May and gradually lost support within the established demand zone.
Once the $1.316 to $1.388 area fell, the bearish momentum accelerated and market sentiment deteriorated further.
As a result, liquidation-driven selling pushed CAKE towards $1.10, creating a capitulation low. However, buyers came back aggressively and reclaimed $1.316, confirming strong post-capitulation demand.
Additionally, rising volumes supported the recovery, while prices stabilized above key levels.
Meanwhile, the RSI reached 68.34, reflecting strong bullish momentum as the price approaches a key resistance test.
This implies that buyers remain active, although the momentum may soon run into resistance from short-term profit-taking.
Therefore, sustained acceptance above $1.388 could encourage a further advance towards the $1.565 resistance zone. However, a break below $1.316 would weaken the recovery structure and increase the likelihood of a retest towards the $1.10 capitulation zone.
Can CAKE clear $1.345 and extend to $1.461?
After recovering from the capitulation low of $1.10, CAKE extended its rebound and is now trading around $1.332 at the time of writing.
After reclaiming $1.316, buyers pushed the price towards the 50% Fibonacci retracement at $1.345, indicating that demand remains active after the strong sell-off.
As a result, the recent structure has improved, with higher lows replacing the panic-induced decline seen in early June.
Momentum indicators support this recovery, with the RSI rising to 66.25 and the CMF remaining positive at 0.34, reflecting genuine capital inflows. Additionally, the bullish crossover in the MACD suggests that buying pressure continues to intensify.
However, the price is now approaching a critical decision area. The $1.345 level represents both a key Fibonacci retracement and nearby resistance, making seller participation likely.
If buyers get a sustained close above this level, attention could shift towards $1.395 and then $1.461.
Nonetheless, failure to overcome resistance could trigger profit-taking after the recent rally. In this case, a pullback towards $1.316 or a 61.8% retracement to $1.294 becomes increasingly likely, while a deeper break could reopen the path towards $1.20.
Final summary
- PancakeSwap (CAKE) recovered from its capitulation low of $1.10 and reclaimed key support at $1.316.
- PancakeSwap remains constructive, although a rejection at $1.345 may encourage a retracement towards support at $1.316 or $1.294.
