CAKE Climbs Off the Floor, Tests Whether $1.345 Is Half-Empty or Half-Full 🍰

PancakeSwap [CAKE] rebounded from a $1.10 capitulation low after buyers reclaimed the $1.316–$1.388 demand zone, with the token trading near $1.332 at the time of writing. The recovery followed a May selloff that accelerated once the $1.316–$1.388 region failed, pushing liquidation-driven flows toward $1.10. Reclaiming $1.316 confirmed strong post-capitulation demand, supported by rising volume and a stabilization above the zone that had previously broken down.

Momentum indicators have tracked the rebound. The Relative Strength Index (RSI) sits at 66.25, while the Chaikin Money Flow (CMF) remains positive at 0.34, reflecting ongoing capital inflows. A bullish Moving Average Convergence Divergence (MACD) crossover has also formed, indicating continued buying pressure. Earlier in the recovery, the RSI had reached 68.34 as price approached the $1.565 area before two rejections from that level reinforced a distribution pattern.

Price is now testing the 50% Fibonacci retracement at $1.345, a level that combines Fibonacci resistance with nearby supply. A sustained close above $1.345 would shift focus to $1.395 and then $1.461. If buyers fail to overcome this level, a pullback toward $1.316 or the 61.8% retracement at $1.294 becomes more probable, and a deeper breakdown could reopen the path toward $1.20.

The structure since the capitulation event has improved, with higher lows replacing the panic-driven decline seen in early June. Sustained acceptance above $1.388 would mark a more decisive shift in the recovery, while a loss of $1.316 would weaken the setup and raise the likelihood of a retest of the $1.10 zone.