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PancakeSwap token has pumped by 12% in the past one week
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CAKE has ranked high on social metrics in the week
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The cryptocurrency has met a psychological $5 resistance and could correct
PancakeSwap CAKE/USD continues to excite despite the broader market slump. The cryptocurrency trades at close to $5, the highest in 4 months. On crypto ranking, PancakeSwap has moved to #60, up from #78 in July. This week, the cryptocurrency has gained by more than 12%.
CAKE’s gains coincide with positive social metrics. On September 29, the cryptocurrency was the second most mentioned BNB Chain project on Twitter. The social media mentions coincided with a 3.95% price jump in 24 hours.
Again on September 24, CAKE ranked second behind XRP on the AltRank list. The list ranks tokens based on social metrics and indicates upside anticipation for the coin. Aappratenly, CAKE was trading at $4.5 on the same date before surging to touch $5 earlier today.
CAKE meets resistance at $5 after weekly gains
Source – TradingView
Technically, CAKE has been moving in a system of higher highs and higher lows. The price action indicates a building and sustained bullish momentum. The token has corrected slightly after meeting resistance at $5. The level coincides with overbought conditions, with the RSI at 70.
Concluding thoughts
Being overbought does not mean that CAKE will undergo an outright correction. Instead, it suggests that buyers may exit positions, which could force a market correction.
With a positive price movement since June, CAKE is among the cryptos to beat the weak sentiment. With the projected correction at $5, buyers would look again to scoop the token at $4.5.
On the flip side, if CAKE manages to break above $5, it could initiate a longer-lasting recovery. An upside could see the token face minor resistance at $5.7.