- Data reveals a huge 440% surge in CAKE whale activity this week, hinting at a potential market bottom.
- CAKE could soar by 40%, reaching the $4.25 level, if it breaches and closes a daily candle above $3.
Amid the ongoing market uncertainty, CAKE, the native token of PancakeSwap, has garnered significant attention from crypto whales and was now on the verge of massive upside momentum.
CAKE whale activity spikes by 440%
Data from the on-chain analytics firm Santiment revealed that whale activity in CAKE has soared by 439.70% in the past week, indicating a potential bottom for the asset and an ideal buying opportunity.
Source: Santiment
This substantial surge in whale activity can create buying pressure and drive further upside momentum.
Data from CoinMarketCap reveals that this increased whale activity has already pushed CAKE up by 38% in the past week, bringing it to a crucial level.
PancakeSwap technical analysis and price prediction
With this substantial upside momentum over the past week, the asset has reached a crucial resistance level, which has a strong history of selling pressure and subsequent price declines.
However, this time, sentiment appeared to be shifting in CAKE due to rising whale activity.
According to expert technical analysis, CAKE looked bullish as it approached the crucial resistance level of $3.
If whale activity remains strong and the price breaches this resistance, there is a high possibility that the asset could soar by 40%, reaching the $4.25 level in the coming days.
Source: TradingView
As of press time, CAKE was trading above the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating an uptrend.
The altcoin was trading near $2.62, registering a modest price surge of 0.65% in the past 24 hours.
However, during the same period, its trading volume dropped by 55%, indicating lower participation from traders and investors compared to the previous day.
This decline in trading volume potentially results from high volatility in the asset’s price across the crypto market.
Traders’ over-leveraged levels
Despite the bullish sentiment and price action, intraday traders appear to have a bearish outlook, as they are betting on the downside.
Data from the on-chain analytics firm Coinglass revealed that traders were over-leveraged at $2.445 on the lower side, with $2.75 million worth of long positions.
Meanwhile, $2.85 is another over-leveraged level where bears have built positions, currently holding $3.55 million worth of short positions.
Source: Coinglass
This suggests that bears are dominating and believe the asset’s price will not surpass the $2.85 mark.
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