PancakeSwap (CAKE) Price Drops Below $2.90
PancakeSwap (CAKE) is trading below $2.90 on Tuesday. The price fell after failing to break a key level the day before. On-chain data shows more holders are selling to take profits. Large holders, or whales, have also been selling their tokens. This suggests the price may drop further, possibly below $2.60.
Whales Selling and Profit-Taking Increase Selling Pressure
- Santiment’s Network Realized Profit/Loss (NPL) metric shows that holders are selling at a profit.
- The NPL spiked on Monday, indicating many holders booked gains, adding to selling pressure.
- Supply Distribution data from Santiment shows whales are reducing their CAKE holdings.
- Since October 14, whales holding between 100,000 and 100 million CAKE tokens sold a total of 108.45 million tokens.
- On the derivatives side, Coinglass reports a long-to-short ratio of 0.66 for CAKE, the lowest in over a month.
- This low ratio indicates bearish sentiment, with traders expecting the price to fall.
Price Forecast: CAKE May Drop Toward $2.60
CAKE has struggled near the 50-day Exponential Moving Average (EMA) at $2.94 since last Friday. On Tuesday, it trades around $2.83 after being rejected by this level the day before.
If the price keeps falling, it could reach the 200-day EMA at $2.60. The Relative Strength Index (RSI) is at 46, below the neutral 50, showing bearish momentum. The Moving Average Convergence Divergence (MACD) also shows a bearish crossover from last week.
However, if CAKE rises and closes above the 50-day EMA at $2.94, it could move up toward the October 14 high of $3.88.
