Is it time to buy CAKE? Whale activity surged by 440%.

In the context of a volatile cryptocurrency market, CAKE – the native token of the PancakeSwap exchange – is garnering strong interest from "whales" and shows signs of being poised for a breakout price increase.

Whale activity of CAKE surged by 440%

Data from on-chain analytics company Santiment shows that over the past week, the activity of "whales" regarding CAKE has increased by up to 439.70%, raising the possibility that this asset has reached its bottom and opened up attractive buying opportunities.

Source: SantimentA significant increase in whale activity could create strong buying pressure, driving stronger bullish momentum in the near future.

According to CoinMarketCap, the aggressive buying from whales has helped the price of CAKE increase by 38% over the past week, bringing this asset close to a significant resistance level.

Technical Analysis and Price Prediction for CAKE

With an impressive price surge in the past week, CAKE has reached an important resistance level – an area that has previously recorded strong selling pressure and caused the price to decline.

However, this time, the market sentiment is showing positive signs due to a significant increase in whale activity.

According to technical analysis experts, CAKE is showing a clear upward trend as it approaches the resistance level of 3 USD.

If whale activity continues to remain high and the price breaks through this resistance level, CAKE could increase by an additional 40%, reaching $4.25 in the coming days.

Source: TradingViewAt the time of writing, CAKE is trading above the 200-day exponential moving average (EMA 200) on the daily timeframe, confirming that the uptrend is dominant.

Currently, CAKE is priced at about 2.62 USD, up slightly by 0.65% in the past 24 hours.

However, during the same period, the trading volume decreased by 55%, indicating that the participation of traders and investors is declining compared to the previous day.

This decrease in trading volume may reflect the high volatility in the value of CAKE in the cryptocurrency market.

Excessive Leverage of Traders

Although the long-term outlook is leaning towards an upward trend, short-term traders are being cautious and betting on the possibility of a price drop.

Data from the Coinglass analytics platform shows that traders are over-leveraging at a level of $2,445 for Long positions, with a total value of up to $2.75 million.

Meanwhile, the level of 2.85 USD is another important leverage threshold where the bears have established short positions, holding 3.55 million USD.

This shows that the bears are still in control and believe that the price of CAKE will have difficulty surpassing the 2.85 USD mark.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.

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Mr. Giáo

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