PancakeSwap still has yet to establish itself above the key psychological resistance at $5 despite high social euphoria around CAKE’s short-term trajectory.
As one of the top Decentralized Exchanges (DEX) on the BNB Chain, PancakeSwap has managed to gain continuous momentum throughout September. The coin and the project have been high on many crypto investors’ watchlist, recently making a comeback in the top trending assets on CoinMarketCap.
Why is CAKE trending?
CAKE is currently up 3.23% on the day and was trading at $4.74 at press time.
One of the major reasons behind PancakeSwap’s recently gained social volumes was the project introducing new updates and features, including a multichain expansion and fee reduction for users.
Apart from the ecosystem-centric developments, 6.7 million coins were recently burnt, aiding its social narrative. The CAKE burn aligns with the project’s goal of making the asset deflationary.
Additionally, PancakeSwap maintained its spot as the BNBChain project with the second-highest social engagement in the last 24 hours, preceded only by RichQuack.
All in all, social metrics indicate a bullish month for PancakeSwap in October, as it’s now ranked sixth in terms of popularity on CoinMarketCap.
New developments and metrics
PancakeSwap recently launched StableSwap to allow its community and CAKE HODLers to trade several stablecoin pairs efficiently and with lower slippage. The DEX is also making several changes to its farm auctions and changing the format for its IFOs.
While the many ecosystem-centric developments (mentioned above) kept social euphoria alive, development activity on the network was still relatively low.
Notably, a lower weighted social sentiment also presented a waning positive sentiment for CAKE despite the hype in the market.
At the time of press, the coin’s 24-hour trade volumes increased over 27.93%, standing at over $47 million.
Over the last 30-days, CAKE managed to appreciate by 15%, opening October with a price of $4.60. CAKE’s RSI is noting a sustained uptick indicative of a higher buying pressure. On average, the RSI has shown that buyers dominated sellers.
However, a lower trend in trade volumes still presents how price action would need retail support. In the near term, if a bullish setup pushing CAKE to the $5 mark fails, a drop back to the $4.50 support level could occur.