PancakeSwap Bull Market Can Return if it Breaks This Logarithmic

PancakeSwap (CAKE) may not see a new bull market until it clears its weekly logarithmic trendline. At the same time, cycle-wise, the cryptocurrency seems to have completed an Elliott Wave flat structure that suggests that we're about to bottom.

CAKE Logarithmic Trendline
The downward sloping logarithmic trendline connects all the major swing highs, starting with the 2021 all-time high of $44.27. The logarithmic trendline also aligns with the 200-day simple moving average, which gives it more weight.

In this regard, a breakout can lead to a shift in the trend direction.

CAKE Elliott Wave Cycle
CAKE’s price is currently trading near its historically lowest level, but based on the Elliott Wave analysis, CAKE's long-term price structure mimics a flat pattern. Flats are corrective patterns in nature with an internal 3-3-5 wave structure.

The first wave ended at the $44.27 all-time high, followed by another 3 wave price structure in wave B, which ended at the $9.44 low. The cryptocurrency then resumed lower in wave C, subdividing into another 5 wave price structure.

In the short term, the current low of $2.48 remains intact; the correction can be called completed.

Following this EW cycle, the cryptocurrency may be in the process of bottoming out. However, the next bull run will be confirmed once the CAKE price clears the logarithmic trendline.

Another sign of a shift in the market can be signaled by a breakout above the 50 mid-level of the weekly RSI oscillator. Once the logarithmic trendline is cleared, there is not much resistance underway until the $10 psychological level.

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