Raydium [RAY] has witnessed impressive growth over the past week, solidifying its position as one of the top-performing tokens in the realm of decentralized finance.
Currently, RAY is trading at $7.88, showing a slight 2.26% daily decline but still holding onto substantial weekly gains of more than 60%.
The emergence of a TD Sequential sell signal on the daily chart has sparked concerns regarding a potential bearish shift as the price approaches critical resistance levels.
Can Raydium uphold its upward trajectory, or is a near-future pullback inescapable?
RAY’s Price Movements Indicate Uncertain Outcomes
Raydium’s price breakout from the correction zone has reinforced its bullish outlook. The appearance of a Cup and Handle pattern on the monthly chart underlines a significant trend reversal, hinting at higher price targets.
Nevertheless, the trading range around $8, as observed at present, has proven to be a robust resistance area, with the current dip highlighting the struggle to sustain momentum.
If RAY fails to surpass this level, a retracement might be in the offing, raising concerns among bullish traders.
DEX Volume Milestone Reflects Growing Interest
Raydium’s decentralized exchange volume has skyrocketed by 273% in the last week, reaching a total activity of $53.68 billion.
This milestone signifies an increasing trust in the platform, positioning it as the front-runner in weekly DEX transactions.
Moreover, the substantial volume indicates enhanced liquidity, likely attracting more market players.
However, traders should proceed with caution as such spikes often herald short-term corrections, especially when coupled with bearish technical signals.
Diminishing Network Expansion Sparks Worries
Despite the price rally of RAY, network expansion has been irregular and is presently on a downward path.
The recent drop in active and newly created wallet addresses indicates reduced user engagement, potentially jeopardizing the rally’s sustainability.
Furthermore, this downturn prompts concerns about the token’s long-term fundamentals, despite its robust price performance.
Hence, revitalizing network activity is pivotal for upholding the existing bullish sentiment.
Increased Exchange Supply Adds Selling Pressure
The availability of RAY on exchanges has surged to 3,937, indicating a probable rise in selling pressure.
Historically, such movements suggest traders gearing up to sell off their holdings, potentially leading to a price correction.
This trend aligns with the bearish sentiment indicated by the TD Sequential signal, heightening the sense of caution. Traders need to closely monitor this development as it could impact short-term price fluctuations.
RAY Confronts Crucial Examinations for Sustained Expansion
The breakout and weekly volume surge of Raydium have showcased robust bullish possibilities, but red flags like dwindling network engagement and escalating selling pressure call for circumspection.
While the Cup and Handle formation point towards long-term upside, the increasing exchange supply and immediate resistance levels may trigger a corrective phase.
Ultimately, Raydium must surmount these hurdles to prolong its upward drive. Will the rally persist, or will a retracement take the lead? Based on current data, a short-term correction seems more probable.