CAKE Up 153.34% in 24 Hours Driven by Short-Term Momentum

On SEP 8 2025, CAKE surged by 153.34% within 24 hours to reach $2.462. Over the past seven days, the price increased by 246.76%, despite a broader 56.82% decline over the last month and a 235.15% drop year-to-date. This sharp short-term rally has drawn attention to CAKE’s price behavior, particularly in the context of recent on-chain and market data.

The recent price action for CAKE reflects a strong short-term bullish trend, which has outpaced medium- and long-term declines. The 24-hour and seven-day gains suggest a concentrated buying interest, possibly driven by algorithmic trading bots or a specific on-chain event. Analysts have noted that such rapid price movements often occur in response to market sentiment rather than fundamental changes, although no official announcements related to CAKE were recorded in the past 48 hours.

The technical indicators for CAKE show a mix of signals. The RSI has crossed into overbought territory, while the MACD has turned bullish, supporting the idea of a short-term reversal from bearish to bullish momentum. However, these indicators contrast with the long-term downward trend, highlighting the volatility and lack of consensus in the market’s valuation of the asset.

Backtest Hypothesis

To assess the sustainability of CAKE’s recent upward move, a backtesting strategy was proposed using a dual-timeframe approach. This strategy involves identifying short-term bullish divergences in the RSI and MACD while filtering for long-term bearish trends. The hypothesis is that CAKE’s short-term volatility creates opportunities for tactical entries that capitalize on momentum without committing to long-term exposure.

The strategy uses a 1-hour and 4-hour chart for signal generation, with entry points set when the RSI forms a bullish divergence and the MACD histogram turns positive. Stops are placed below the most recent swing low to manage risk, while take-profit levels are aligned with key psychological and Fibonacci retracement levels. This approach is designed to capture rapid price movements without being influenced by broader market trends.