Latest MilkyWay (MILK) Price Analysis

Deep Dive

1. PancakeSwap Controversy (Bearish Impact)

Overview: A September 2025 Cointelegraph report revealed that ~50% of MILK token prize winners in PancakeSwap’s trading competitions were linked wallets conducting wash trades. Sponsors like MilkyWay faced reputational damage despite no direct involvement in the fraud.

What this means: The scandal reignited concerns about MILK’s reliance on incentivized trading campaigns for liquidity. Reduced trust could suppress retail participation, exacerbating selling pressure as holders exit positions.

What to look out for: Any statements from MilkyWay’s team addressing the controversy or distancing from future PancakeSwap campaigns.

2. Technical Breakdown (Bearish Impact)

Overview: MILK’s price ($0.0265) sits 12.3% below its 7-day SMA ($0.0303) and 20.6% below its 30-day SMA ($0.0334). The RSI-7 (24.71) signals oversold conditions, but the MACD histogram (-0.000143) shows bearish momentum persisting.

What this means: Oversold RSI levels might trigger short-term rebounds, but the lack of bullish divergence and sustained selling volume (24h: $1.65M, -4.07%) suggests traders remain cautious. A break below the $0.026 pivot point could target Fibonacci retracement support at $0.023.

3. Altcoin Sentiment Erosion (Mixed Impact)

Overview: Bitcoin dominance rose to 59.42% (up 0.18% in 24h), reflecting capital rotation away from riskier altcoins. The Altcoin Season Index (30/100) remains in “Bitcoin Season” territory.

What this means: MILK’s decline mirrors sector-wide weakness, but its -8.98% drop outpaced the average altcoin (-4-5%). This underperformance highlights project-specific risks outweighing broader trends.

Conclusion

MILK’s slump stems from a mix of damaged credibility from exchange controversies, bearish technicals, and sector-wide risk aversion. While oversold conditions may invite tactical buying, the absence of near-term catalysts and low liquidity ($1.65M turnover) heighten volatility risks.

Key watch: Can MILK hold the $0.026 support level, or will breaking it trigger another leg down toward $0.023?

Deep Dive

1. PancakeSwap Controversy Spillover (Mixed Impact)

Overview: MILK was a sponsor token in PancakeSwap’s July–August 2025 trading competitions, which faced scrutiny after Cointelegraph revealed potential wash trading by connected wallets. While the event concluded months ago, MILK’s association with BNB Chain’s largest DEX may still drive sporadic speculative interest.

What this means: Lingering visibility from high-profile DeFi integrations can intermittently boost trading activity, even amid controversy. However, the lack of recent protocol updates or partnerships limits sustained momentum.

2. Technical Rebound Signals (Neutral)

Overview: MILK’s 14-day RSI (44.66) hovered near oversold territory, while its price ($0.0311) traded below the 30-day SMA ($0.0347). The MACD histogram (-0.00018) showed bearish momentum but at a decelerating pace.

What this means: Short-term traders might interpret this as a dip-buying opportunity, though the lack of a clear bullish crossover in key indicators suggests caution. Resistance at $0.0349 (30-day SMA) remains critical for trend reversal confirmation.

What to watch: A sustained break above $0.0349 could signal bullish momentum; failure may retest the 2025 low of $0.0235.

3. Low Liquidity Amplification (Bearish Risk)

Overview: MILK’s 24h volume ($1.89M) represents just 17.5% of its market cap, per CoinMarketCap’s liquidity metric. Turnover (volume/market cap) of 0.176 indicates thin order books.

What this means: Low liquidity magnifies price swings, making MILK prone to volatility from minor trades. The 14.8% spike in volume likely amplified the 0.6% price rise despite weak fundamentals.

Conclusion

MILK’s 24h gain appears driven by technical factors and residual attention from older DeFi campaigns rather than new catalysts. With weak momentum indicators and thin liquidity, the bounce lacks conviction.

Key watch: Can MILK hold above its 7-day SMA ($0.0307) to stabilize, or will selling pressure resume amid broader market fear (CMC Fear & Greed Index: 25)?