CAKE/USD Daily Chart (Crypto.com) – Source: TradingView
The Relative Strength Index (RSI) has reached overbought levels in just two days, possibly as a big load of short orders were blown up as a result of this move.
Crypto liquidations as a whole favor a short-squeeze scenario as more than $900 million worth of short positions have been wiped out in the past 72 hours alone.
We get two obvious targets for CAKE in the near term based on the daily chart. The first at $4.2 and the second at $5. This results in a 17% upside potential in the near term and a higher 40% gain if the rally continues toward that second target.
Above-average trading volumes confirm a bullish outlook, and market conditions remain quite favorable for this token. At $5, its market cap would rise to around $1.7 billion.
Nonetheless, if the latest positive momentum that the Binance Smart Chain is experiencing results in an improvement in the market’s perception of Pancake Swap, the project could rise even further, possibly to $10
This means that its market cap would reach the $3 billion range, where top CEX tokens like Bitget Token (BGB) and OKB (OKB) are.
