PancakeSwap sees whale interest, but the price pump should not fool investors

• PancakeSwap remains popular with whales.
• However, market metrics and indicators paint an ambiguous picture.

PancakeSwaps [CAKE] remains fairly consistent with its burning process, reflecting the token’s deflationary characteristics. The network recently revealed that they burned over $27 million worth of CAKE.

🔥 6,992,717 $CAKE just burned – that’s $27M!

💰 Trading fees (Exchange and Perpetual): 212k CAKE ($816k) +68%
🔮 Prediction: 61k CAKE ($236k) -14%
🎟️ Lottery: 36k CAKE ($138k) +36%
🔒 NFT Market, Profile & Factory: 1,134 KUE ($4k) +10%
🛍 IFO: CAKE 3k ($11k) pic.twitter.com/2xEiNFPIv0

— PancakeSwap 🥞 #Multichain (@PancakeSwap) January 23, 2023

Not only that, CAKE is also one of the main choices of popes. WhaleStats, a popular Twitter handle that posts updates regarding whale activity, shows that CAKE is on the list of tokens held by the top 100 BSC whales. This is good news, because it proves the pope’s trust in CAKE.

🐳 Top 100 #BSC whales are hiding

$63,784,004 $LYO
$30,541,343 $SFP
$30,003,914 $XRP
$20,945,818 $USDZ
$20,519,180 $BALL
$15,006,972 $OFF
$14,800,877 $cake
$11,588,597 $PHB

Whale leaderboard 👇https://t.co/0SYnjw0xQs pic.twitter.com/enl5xZ9TR4

— WhaleStats – BSC top 1000 rich list (@WhaleStatsBSC) January 24, 2023

Realistic or not, this is it CAKE market cap in BTC terms

CAKE is baking, but here’s the catch!

While CAKE attracted the interest of whales, its performance on the price side was also upbeat, as it recorded a double-digit weekly increase. CoinMarketCap data reveals that CAKE has increased in price by over 7% in the last 24 hours, and at the time of writing, is trading at $4.15 with a market capitalization of over $683 million.

Although the price action favored investors, CryptoQuant’s data revealed that CAKE’s Relative Strength Index (RSI) was in an overbought position.

Especially temporarily CAKEthe price increases, the volume increases simultaneously, which legitimizes the spike. However, the MVRV ratio increased substantially over the last few days, indicating a market peak. Daily active addresses recorded a decline, indicating a lower number of users on the network.

Positive sentiment around CAKE also fell, reflecting reduced investor confidence in CAKE. Interestingly, even though the positive sentiment decreased, CAKE managed to achieve list of the top 10 BNB Chain projects by social activity.

Source: Santim

Read PancakeSwaps [CAKE] Price Predictions 2023-24

Caution is advised

CAKEthe daily chart shows that there is a possibility of a continued spike, but things may also choose to follow the opposite trend. For example, the MACD reading is bullish, as is the Exponential Moving Average Band (EMA), which displays a bullish crossover.

However, the Money Flow Index (MFI) entered the overbought zone which could indicate selling pressure in the coming days.

Source: TradingView