CAKE has been dumping very hard over the past couple of days. Where the market has seen a big bullish move, CAKE completely ignored it and continued going down.
Why you ask? It has to do with a token unlock. Investors got their hands on 52-week staked tokens and sold them on the open market.
Apart from the terrible looking technicals, the idea behind this unlimited supply (inflationary) token just doesn't perform well in bearish market conditions.
If we will not see some kind of bounce from the June 2022 lows, I don't see any reason to be bullish on CAKE in the foreseeable future. In addition, we have to consider the fact that CAKE might have had it's peak and will slowly bleed to zero over time (which is not uncommon in crypto).
Is this token going to die? Reversal when?
Share your thoughts on CAKE🙏.
Why you ask? It has to do with a token unlock. Investors got their hands on 52-week staked tokens and sold them on the open market.
Apart from the terrible looking technicals, the idea behind this unlimited supply (inflationary) token just doesn't perform well in bearish market conditions.
If we will not see some kind of bounce from the June 2022 lows, I don't see any reason to be bullish on CAKE in the foreseeable future. In addition, we have to consider the fact that CAKE might have had it's peak and will slowly bleed to zero over time (which is not uncommon in crypto).
Is this token going to die? Reversal when?
Share your thoughts on CAKE🙏.
Comment:
Edit: token supply is 750 mil with 26% in circulation according to CMC.
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