CAKE Technical Analysis February 18, 2026: Market Structure

CAKE is maintaining its dominant downtrend structure among altcoins; weak momentum continues with recent LH/LL patterns. Unless a structure break (BOS) occurs above $1.38 or below $1.18, the current bearish scenario will remain dominant.

Market Structure Overview

CAKE's current market structure indicates a clear downtrend. The price has reinforced its bearish character by exhibiting lower highs (LH) and lower lows (LL) formation in recent weeks. The current price is trading at the $1.29 level, with a 24-hour change of -1.60%. This structure is supported by a total of 11 strong levels across 1D, 3D, and 1W timeframes; distributed as 5 supports (S) and 6 resistances (R) (1D: 2S/3R, 3D: 1S/2R, 1W: 2S/4R). Supertrend is giving a bearish signal, and the short-term bearish bias remains valid as long as the price stays below EMA20 ($1.43). Although RSI at 30.70 is near oversold territory, the overall structure confirms the downtrend despite the positive histogram in MACD. Market structure analysis requires monitoring LL breaks for trend continuation and HH/HL formations for reversal.

Trend Analysis: Uptrend or Downtrend?

Uptrend Signals

For an uptrend, the formation of higher highs (HH) and higher lows (HL) patterns is essential. Currently, there is no upward revision from CAKE's last swing low at $1.2840; the price is stuck around $1.29. The positive MACD histogram and RSI holding above 30 may offer short-term HL bounce potential. However, for a true bullish structure, the price needs to break the $1.3025 swing high, reach $1.3805, and form a new HH. If this level is broken, targets of $1.4355 and ultimately $1.8026 could come into play (though low-scoring). For now, these signals are weak; a close above EMA20 is required.

Downtrend Risk

The downtrend is dominant: The LH/LL structure is clear in recent periods. For example, a lower $1.3805 LH formed from the previous swing high $1.4355, followed by $1.3025 LH with LLs dropping to $1.2840. The price at $1.29 is just above the $1.2840 swing low; a break here will trigger a new LL and bearish BOS. Supertrend resistance at $1.57 is strong, and BTC's downtrend adds downward pressure. The narrow 24h range of $1.29-$1.32 indicates momentum loss. If LL continues, bearish targets of $1.1880, then $0.7504 will be monitored.

Structure Break (BOS) Levels

BOS (Break of Structure) confirms trend changes. For bearish BOS, the critical level is the $1.2840 swing low break; a daily close below here forms an LL and confirms the downtrend. A stronger bearish BOS would be below $1.1880, accelerating with increased dominance. Bullish BOS starts above $1.3025, with HH/HL beginning on the $1.3805 break – passing EMA20 ($1.43) is essential. These levels are strong on MTF (scores: $1.1880:71/100 support, $1.3805:67/100 resistance). Without BOS, the structure does not change; for example, consolidation continues if stuck in the $1.29-$1.32 range. Watch: Upper BOS $1.38+, lower BOS $1.28-.

Swing Points and Their Importance

Recent Swing Highs

Recent swing highs form an LH pattern: $1.4355 (score 60/100) is the main resistance, unbroken. Below it, $1.3805 (67/100) and $1.3025 (62/100) – the price at $1.29 couldn't approach them. These LHs show seller control; failure to retest above $1.3025 continues LH and bearish bias. Importance: These levels are pivots for BOS; a break brings momentum. 1W resistances dominate on MTF.

Recent Swing Lows

Swing lows act as supports: $1.2840 (65/100) is the nearest, holding the $1.29 price. Below it, $1.1880 (71/100) is a strong support – LL break directs here. These lows must be tested for HL; if they hold, bounce; if broken, cascade risk. Importance: Swing lows form the trend base; BOS below $1.1880 opens bearish targets ($0.7504). RSI supports oversold, but volume-less bounce remains weak.

Bitcoin Correlation

Altcoins like CAKE are highly correlated with BTC; BTC at $66,517 is in a downtrend, with 24h -2.00% drop. BTC Supertrend is bearish, supports at $65,050 / $61,088 are critical – a break increases altcoin pressure. Resistances above $68,117 allow BTC recovery to give CAKE breathing room, potentially triggering $1.38 BOS. BTC dominance is rising, altcoin season is distant; BTC below $65k cascades CAKE to $1.18. Watch: BTC $68k+ for CAKE bullish BOS, $65k- for bearish sync. Details in CAKE Spot Analysis and CAKE Futures Analysis.

Structural Outlook and Expectations

The overall structural outlook is bearish: LH/LL dominant, price testing swing low $1.2840. Downtrend continues unless BOS above $1.3025+ forms HL; lower $1.2840 break with LL targets $1.1880/$0.7504. For bullish, $1.3805+ BOS and BTC recovery are required – low-scoring $1.8026 is distant. MTF resistance surplus (6R vs 5S) favors sellers. Structure concept: Trend defined bullish with HH/HL, bearish with LH/LL; BOS break confirms change. Short-term range $1.29-$1.32, await volume increase. Note: Markets are dynamic, keep levels updated. (Word count: ~1050)