Whale sells off, investors take profit – PancakeSwap (CAKE) faces bearish pressure

PancakeSwap (CAKE) is currently trading in the red, fluctuating below the 2.90 USD threshold at the time of writing on Tuesday, after being strongly rejected at an important resistance zone in the previous session. On-chain data continues to reinforce the negative picture, showing an increase in take profit activity among investors, while whales quietly exit their positions. Technically, CAKE still faces the risk of further weakening, with the possibility of sliding below the 2.60 USD mark if buying pressure does not return soon.

Whales offload, investors take profit leading to increased selling pressure

The Network Realized Profit/Loss indicator (NPL) from Santiment shows that PancakeSwap investors are increasing their take profit activities.

On the chart, this indicator unexpectedly surged on Monday, indicating that the majority of investors are selling off for significant profits, thereby adding selling pressure on the price of CAKE.

NPL chart of CAKE | Source: SantimentThe Supply Distribution data from Santiment further reinforces the negative trend, as the large wallet group (whales) continuously reduces their holding ratio. Specifically, the three whale groups hold 100,000–1 million CAKE (red line), 1–10 million (yellow line), and 10–100 million tokens (blue line) have sold a total of 108.45 million CAKE since October 14.

CAKE Supply Distribution Chart | Source: SantimentOn the derivatives market, the long-to-short ratio of CAKE on the Coinglass platform dropped to 0.66 on Tuesday – the lowest level in over a month, reflecting a bearish sentiment and expectations that CAKE's price may continue to weaken in the short term.

CAKE Buy/Sell Ratio Chart | Source: Coinglass## PancakeSwap Price Forecast: The bears aim to adjust to the 2.60 USD mark.

The price of PancakeSwap (CAKE) is still struggling around the (EMA) 50-day moving average at 2.94 USD since the end of last week. As of the time of writing today (Tuesday), CAKE has slightly decreased to around 2.83 USD after continuing to be rejected at the 50-day EMA line in yesterday's session.

If the adjustment pressure is maintained, this token may extend its downtrend to the 200-day exponential moving average (EMA) at 2.60 USD – the next important support zone.

Daily CAKE/USDT Chart | Source: TradingViewOn a technical level, the RSI indicator is at 46, below the neutral threshold of 50, indicating that bears are still in control. At the same time, the MACD indicator recorded a bearish cross( from last week and continues to maintain a negative signal.

Conversely, if CAKE can recover and close the daily candle above the 50-day EMA at )2.94 USD(, buying pressure may be activated again, opening up the opportunity for an increase towards the peak on October 14 at 3.88 USD.

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