PancakeSwap’s CAKE token is at a crucial crossroads battling long-term resistance above the $4.50 mark.
PancakeSwap has been high on crypto investors’ watchlist over the last week. Despite the larger bearish market conditions, CAKE has managed to outperform most of the cryptocurrencies in the top 100 assets by market cap, closing the day and week in green.
Social anticipation running high for CAKE
At press time, CAKE registered over 8% gains on the weekly time frame as its price oscillated at the $4.60 mark. CAKE has managed to maintain its spot in the top three tokens on CoinMarketCap’s trending list for a few days.
After recovering from the under $4.0 price level, the coin gained over 12% in the last seven days and was one of the few tokens that flashed green on the one-hour, one-day, and one-week charts.
Additionally, insights from LunarCrush highlighted that the token ranked just behind the top performer XRP in the list of the top 10 coins by one-week AltRank. These rankings present an insight into the coin’s social metrics and often rank coins according to the bullish anticipation around their price.
CAKE’s 24-hour trade volumes, at press time, noted a sharp rise of over 52% standing at over $55 million. Relatively high trade volumes are reflective of a higher retail euphoria for the token which could aid short-term price momentum.
PancakeSwap was also trending on CoinMarketCap as one of the top trending BNB chain projects alongside tokens like RichQUACK.
Will rally continue?
The recent 12% gains have aided CAKE’s price recovery from the June losses that brought the coin down by close to 40%. Notably, the $4.50 mark has acted as key resistance for the token over the last five months.
If CAKE bulls manage to keep prices above the $4.50 level, the next significant resistance would be at the $5 psychological barrier. Looking at CAKE’s relative strength on the daily chart, a sustained uptick in buying pressure presents decent scope for the coin’s short-term trajectory.
That said, supply-demand dynamics appeared prime for a price rise as 7,002,686 CAKE equivalent to $32 million was recently burned, removing some CAKE from the supply.
A tweet highlighted how the pool continued to grow by looking at the total supply against the total amount burnt.
With the total $CAKE supply at 44.08% of max supply, the inflation rate stood at 8.3$CAKE/block. The Tweet claimed that at the current rate of burning, the max supply could be reached in 50.4 million blocks. This ensures a solid pool growth for the token as burning remains intact.
However, if a bullish setup pushing it to the $5 mark fails, a rebound to the lower $4 support level could be expected.
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Source: https://beincrypto.com/will-pancakeswap-cake-token-gain-enough-retail-interest-to-rally/