CAKE Breaks Multi-Year Trendline: Here’s Why Experts See $40 Potential

CAKE confirms a bullish reversal, breaking its multi-year trendline with higher highs and lows, signaling sustained upward momentum.

Short-term triangle breakout above $2.40 on rising volume points to a $4.15 target, supported by strong buying pressure and accumulation.

A full recovery phase for CAKE is expected, with thin resistance above $5.00, opening the door for extended gains and long-term upside.

PancakeSwap’s CAKE token has breached a critical resistance zone, indicating the formation of a new upward trend. Market experts now highlight multiple breakout signals that could support a substantial rally in the months ahead.

Trend Reversal Confirms Break from Long-Term Bearish Cycle

CAKE’s price action has transitioned into a bullish reversal, displaying a clear pattern of higher lows and higher highs. Following a lengthy downtrend, the token has now broken above its multi-year descending trendline with conviction. The price structure reflects a completed shift from bearish pressure to bullish control.

Source: Javon Marks

Referencing the post above, technical analyst Javon Marks outlines a scenario where CAKE has entered an early expansion phase. The expert identifies the reversal low near $1.00 as a structural anchor for further upside. His analysis projects a long-term target near $40.794, aligning with past cycle highs and measured move projections.

To look deeper into this development, the chart shows a sequence of confirmed higher lows, reinforcing long-term bullish momentum. The breakout occurred after a period of price compression and rising volume, key indicators of accumulation. This suggests broader investor confidence is building around CAKE’s recovery path.

Another important aspect involves the price behavior around breakout levels, where elevated activity supports continued upside potential. These conditions are consistent with historical altcoin reversals, where breakout confirmation leads to extended rallies.

Short-Term Triangle Breakout Strengthens Bullish Setup

Switching focus to intraday movement, another analyst highlights a breakout from a symmetrical triangle on the 8-hour chart. The pattern formed from February to May and culminated in a breakout above resistance on May 27. CAKE surged 8.99% that day, closing at $2.6150 and clearing multiple resistance points.

Source: World of Charts

What becomes clear here is the technical setup pointing to a potential move toward $4.15. This target stems from the triangle’s measured height, added to the breakout level near $2.40. With higher lows forming consistently, price momentum appears supported by a strong base of buying pressure.

Also worth noting is how volume spiked during the breakout, forming decisive green candles and holding above prior resistance. These are often seen as confirmation signals in bullish continuation patterns. A sustained position above $2.45 would further reinforce the breakout’s strength.

Final Outlook: Analysts Anticipate Broader Bull Run

Stepping back, analysts widely agree that CAKE may have completed a full cycle bottom and entered a recovery phase. With both long-term and short-term technical signals aligning, the foundation for further gains appears well-established. The price structure mirrors patterns that preceded strong rallies in earlier altcoin cycles.

In addition, resistance remains thin above the $5.00 mark, opening the path for accelerated gains. This lack of overhead supply gives bulls an edge in building momentum if current levels hold. Analysts are saying CAKE’s breakout is not only valid—it could be the beginning of a much larger market move.

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