Analytics
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The PancakeSwap (CAKE) token is approaching the psychologically significant $5 mark. Retail investors have been closely monitoring the price dynamics of the token for more than a week.
Altcoin CAKE has become one of the growth leaders in the top 100 cryptocurrencies by market capitalization. It shows stable growth and closes in positive territory for three days in a row, despite the general bearish mood.
Social Sentiment Indicator Rising
At press time, CAKE is trading at $4.7. During the day, the token has risen in price by more than 4%. Moreover, CAKE has not left the top charts of CoinMarketCap for several days, as one of the most popular tokens.
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Cake/USD hourly chart. Source: Trading View
Over the week, the coin has risen in price by more than 10%, rebounding from the $4 support area.
In addition, LunarCrush data shows that the token is in second place in the ranking of the most successful coins at the end of the week, behind only XRP. This rating takes into account not only price dynamics, but also social indicators.
CAKE trading volumes grew by more than 50% in a matter of days and at the moment exceeded $55 million. Relatively high volumes indicate that retail investors are actively interested in the token. It is they who generate positive price dynamics in the short term.
Will CAKE continue to grow
The current wave of growth continues the process of CAKE recovery after the June drawdown, as a result of which the coin lost 40% of its value. The $4.5 area has served as resistance for the past five months, so a breakout of the $4.5 area sets the stage for further gains.
The next important barrier is at the psychologically significant level of $5. The technical picture on the daily chart indicates growing buying pressure.
In addition, the network recently burned 7,002,686 CAKEs worth $32 million (at the time of the burn). As a result, the volume of supply of tokens decreased, which also contributed to the price increase.
Movements in the CAKE pool. Source: Twitter
Currently, 44.08% of the maximum CAKE supply is in circulation, so the inflation in the network is 8.3 CAKE per block. At current burn rates, maximum supply will be reached in 50.4 million blocks. This means that the token has the potential for growth.
However, if the price fails to break the $5 mark, a pullback to support around $4 is possible.
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