CAKE Price Crashes to Key Support as Binance Whales Bet on a Rebound

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• CAKE volume surged while price fell, confirming strong distribution.
  
• Binance whales are positioning more bullishly than the broader market.
  
• Oversold RSI and historical support leave room for a technical bounce.

PancakeSwap’s CAKE token is under heavy pressure, caught in one of its longest bearish stretches in months. Prices continue to slide, yet beneath the surface, trading behavior across Binance — the exchange most closely tied to the BNB Smart Chain ecosystem — reveals a market divided between short-term pessimism and selective long-term optimism.

This split between spot traders and perpetual futures participants is shaping CAKE’s near-term outlook and offering clues about where the token could head next.

Rising Volume Confirms Strong Distribution

CAKE’s recent drop is being reinforced by a sharp expansion in trading activity. Overall volume has surged roughly 115% to around $76 million while the token’s price has fallen more than 11% over the same period — a classic signal of distribution.

Data from CoinMarketCap shows Binance traders accounting for a meaningful share of that pressure, contributing about 14% of total volume and roughly 11% of net selling. In practical terms, that means many traders are using the current environment to exit positions rather than accumulate.

This pattern confirms that bearish sentiment still dominates the broader market.

Perpetual Traders Split as Whales Lean Bullish

The perpetual futures market largely echoes the bearish tone. Across major exchanges, taker sell orders outweigh buys, pointing to aggressive short-side positioning and expectations of further downside.

Binance’s largest traders, however, stand apart. Their Taker Buy/Sell Ratio sits near 2.4, meaning buy-side market orders significantly exceed sells. This suggests that some high-capital participants are quietly positioning for a rebound, even as the crowd remains cautious.

Such divergence often appears near potential inflection points, though it does not guarantee a reversal.

Demand Zone Becomes the Technical Battleground

CAKE has now slipped to its lowest level since April 2025, landing inside a historical demand zone that previously sparked strong accumulation and upside moves.

If buyers defend this area again, a short-term recovery could develop. Any bounce, however, is likely to face immediate pressure from a descending trendline that has capped price action since late 2025. A clean break above that line could open a path toward the $2.5–$2.7 region. Failure to hold support, on the other hand, raises the risk of extended consolidation or another leg lower.

Momentum indicators reflect the same tension seen in trader positioning. The Money Flow Index shows persistent capital outflows, reinforcing the bearish backdrop. Meanwhile, the Relative Strength Index has dropped below 30, entering oversold territory — a condition that often precedes short-lived relief rallies.

Also Read: PancakeSwap Joins Ondo Finance to Tokenize Real-World Assets

Together, these signals point to a market that remains weak, but potentially stretched.

CAKE’s trend is still pointed downward, backed by heavy selling and capital outflows. Yet growing divergence between retail behavior and large Binance traders, combined with oversold technicals at a major demand zone, keeps the door open for a short-term bounce. Whether that bounce turns into something more will depend on buyers proving they can reclaim key technical levels.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.