Will CAKE Price Rally to $5?

PancakeSwap price prediction turned bullish for 2024 after a surprising rally in the current month. It broke out of the $1.500 hurdle with a massive buying volume which fueled the momentum.

CAKE price formed a bullish reversal pattern and buyers seem to be returning to track. The sudden rise in the buying volume indicates either some big players had injected the money or short sellers covered their position.

If the recent up move is supported by genuine buyers then prices will sustain the higher levels. Esle, the bubble will burst and prices will erode the gains.

CAKE price managed to climb above the 50-day EMA and 200-day EMA showcasing that the trend has reversed upward. However, the prices look overstretched so it’s better if CAKE crypto prices spend some into consolidation.

On the higher side, $2.500 is acting as an immediate hurdle for bulls’ showcasing sellers’ presence. Until it gets broken, the bears will restrict the upward momentum.

At the time of writing, PancakeSwap price is trading at $2.172 on a flat basis. The 24-hour volume to market cap is 19.51%.

What Triggers the Momentum in PancakeSwap Price?

PancakeSwap price prediction is bullish for 2024 till it sustains above the $1.500 level. This recovery in the CAKE crypto prices is quite surprising. One of the main reasons for this upmove is the short covering.

The price chart of CAKE showcases that for the last six months, the crypto has been inside the bear grip and a heavy short build-up is there. So, the CAKE price triggered a short squeeze and took a U-turn from the lows.

At the same time, overall crypto markets also begin to recover which positively impacts the CAKE prices. The analysis suggests that the recent rally in PancakeSwap crypto price is a mixture of a short squeeze as well as genuine buying.

Is the Up Move in CAKE Price a Bubble?

CAKE price is sustaining above $2.000 and buyers are successfully holding the gains. The price action indicates this up move is not a bubble so more upward momentum is possible in coming months.

If the buyers succeed in breaking out of the $2.500 hurdle, then a 10% to 15% sharp rise may be visible. However, if the price faces rejection, then CAKE crypto may spend some more time in an existing range.

Conclusion

PancakeSwap price prediction is bullish for 2024 and suggests more upside is pending. The recent upmove in CAKE prices looks reliable and buyers are actively participating in the rally showcasing confidence.

The analysis suggests CAKE crypto might break the $2.500 hurdle and fly to $5.000 in 2024.

Technical levels

Resistance levels: $2.518 and $3.014
Support levels: $2.00 and $1.517

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.