The Treasure Cave is in Mountain Falls Which is Hidden Behind a Giant Boulder. You Will Have to Destroy the Boulder To Get In The Treasure Cave
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if you mean the one in the mountain rise cave, then you have to set the bomb plant on fire with ash, and then try and make the bomb plant explode near the troll if you mean the one outside, still on mountain rise, then you have to use one of ash's moves (cant remember which) on the flammable red barrel thing.
The rare treasure can be found in a cave containing a crab, treasure and a bubble blower. The crab will try to steal some of the treasure, however, if you let him steal all the treasure he'll give you an Emerald which is the rare treasure.
On cave ceiling on page 24
If you are talking about the new one you have to get a hard hat or controtion hat and press the dance button in the cave in the mine then find pieces of a treasure and then it will say congratulations you have got a new pin and opened a new cave. Then go to the cave and you will see a sign for a 50 coin diving suit. Then go to the lake cave it is called the Hidden Lake.
In the cave east of Rosehill (the Waterfall Cave), on the other side of the mountains. You will need the Ultimate Key to unlock prison doors, and that will lead you down into a cave. The last treasure chest contains a Liquid Metal Sword!