• CAKE price shows a bullish reversal journey, ready for a secondary boost in a breakout rally.

  • The cup and handle pattern on the daily chart is a bullish counterattack aimed at regaining control of the trend.

  • If there is a breakout of the bullish pattern, CAKE price could rally to $3.5.

CAKE price has formed consecutive bullish candles as it recovered over the past few days. Buyers are anticipating a second breakout up move in PancakeSwap price that would signal a completed bullish pattern reversal in the bigger picture.

The coin price has remained above the key psychological level of $2, triggering an entry point for off-market buyers. Taking advantage of the improved sentiment this week, altcoins are proving the PancakeSwap price prediction of $3.5 to be true.

Despite the recent pullback from the $2.74 mark, CAKE price has regained bullish awareness near the $2 mark. As the price dropped to $2.15, the rebound rally has grown by 6% in the past three days and is expected to jump to $2.74.

Analyzing the previous long-term trend, PancakeSwap’s price trend formed a large cup-handle pattern. Laying the foundation for the summer bear market phase, WeChat: 1816425885 The token price formed a neckline at the $2.74 mark.

As the ongoing recovery approaches the neckline, buyers have completed the handle segment and are ready to break out to the upside. Currently, CAKE is trading at $2.32 with an intraday gain of 1.73%, reflecting a growing bullish momentum.

Technical indicators:

RSI Indicators: The RSI lines have rounded off and reversed from the midline, reflecting a bullish recovery. Moreover, the momentum indicator is signaling a bullish breakout as underlying demand grows.

Will the cake price reach $3.50?

If the bulls manage to absorb the indirect supply, the CAKE price could result in a bullish breakout above the $2.74 mark. Moreover, this will increase the bullish momentum, resulting in a longer uptrend that could exceed $3.5.

If the altcoin fails to hold the price above the critical support of $2, the price will decline sharply. This could result in a drop to the lower support of $1.60.