Altcoin

Decoding reasons behind CAKE’s sluggish performance in last month

Published

2 years ago

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Source: Unsplash

  • PancakeSwap concluded its special Lunar new year jackpot event. 
  • Whale interest increased but price action remained dormant. 

Recently, PancakeSwap [CAKE] joined BNB and AvengerDAO to increase securities within the ecosystem. AvengerDAO is a unique community-run security infrastructure project designed to protect users on the BNB Chain from possible exploits, scams, and malicious actors. 

Read PancakeSwap’s [CAKE] Price Prediction 2023-24

Moreover, CAKE also concluded its special Lunar New Year jackpot event, which had 1200 winning tickets that matched the first 1–3 numbers.

PancakeSwap announced this special Lunar New Year lottery campaign a few days ago, with the chance to win up to 26,530 CAKE. Soon after the event concluded, the whales showed interest in CAKE.

According to WhaleStats, a popular Twitter handle that posts updates related to whale activity, CAKE flipped BTCB to become the most traded token among the top 100 BSC whales.

However, while these developments happened, CAKE’s performance on the price front remained pretty dormant. As per CoinMarketCap, CAKE’s price declined nearly 0.5% in the last 24 hours, and at the time of writing, it was trading at $4.02 with a market capitalization of more than $685 million. 

What went wrong?

A look at CAKE’s on-chain metrics gave a clearer picture regarding what did not work in the token’s favor.

CAKE’s MVRV Ratio registered a downtick over the last few days, which by and large is a bearish signal.

The volume also followed the same route and decreased. CAKE’s 1-week price volatility might have affected the token as it went southwards. Nonetheless, CAKE managed to remain popular as its social volume increased.

Source: Santiment

Realistic or not, here’s CAKE’s market cap in BTC’s terms

What to expect?

CAKE has been showing resistance at the $4.024 mark for quite a few weeks. As per the Exponential Moving Average (EMA) Ribbon, it can break the resistance as it showed a bullish upper hand in the market.

Though the Chaikin Money Flow (CMF) was near the neutral mark, it registered a slight uptick, which was in the buyers’ favor. The Relative Strength Index (RSI) looked troublesome though, as it was right near the overbought zone which might initiate selling pressure. 

Source: TradingView

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