Over the past 24 hours, Raydium [RAY] has seen a notable upsurge of 15%, propelling its value to $7.50 at the current moment. This upward trend mirrors a cup-and-handle formation, indicating a potential breakthrough.
Nevertheless, the $8 mark poses a significant obstacle that needs to be surpassed to facilitate further progress. It is crucial for traders to observe whether RAY can uphold this positive trend or encounter a setback.
Evaluating the Bullish Breakout Scenario of RAY
RAY has been shaping a cup-and-handle pattern, typically signaling a continuation of positive momentum. The price has been steadily recovering from a recent decline, aiming towards surpassing the major resistance level of $8.01.
If buyers manage to maintain dominance in the market, there is potential for a breakout towards $9.00, driving additional bullish sentiment. However, a failure to sustain levels above $8.01 could trigger a regression towards $7.20, where short-term support is established.
Are Active Addresses Contributing to Raydium’s Rally?
On-chain data shows that the number of active addresses has increased to 12, indicating heightened participation in the market.
Despite some fluctuations, consistent growth in active addresses generally serves as a positive indicator, reflecting increased network utilization.
A continued rise in this metric could point towards a stronger demand for RAY, supporting further appreciation in its price. Conversely, a sudden decline in active addresses may hint at declining interest.
Confirmation of Bullish Momentum through Technical Indicators
Technical indicators validate the ongoing bullish momentum, with the Relative Strength Index (RSI) standing at 58.64, indicating a robust yet not excessively overbought market.
Moreover, the 9-day Moving Average (MA) at 6.87 has exceeded the 21-day MA at 6.82, signaling a bullish crossover.
These indicators align with the cup-and-handle formation, reinforcing the argument for an upward breakout. However, a potential overbought market could emerge if the RSI surpasses 70, potentially leading to a temporary correction.
NVT Ratio Suggests a Possible Cooling Period
Despite the strong price action, the NVT ratio has decreased to 1.15, indicating increased transactional activity in relation to the market capitalization.
Although a lower NVT ratio generally signals healthy network usage, significant declines may also imply upcoming volatility.
In the event of mounting selling pressure, RAY could experience a brief pullback to $7.20 before embarking on another breakout attempt. However, stable transaction volumes could help sustain the current rally.
Final Thoughts: Can Raydium Overcome the $8 Boundary?
RAY maintains a robust bullish momentum, supported by growing active addresses, a positive RSI, and a bullish moving average cross. However, the $8.01 resistance level continues to pose a formidable challenge.
If buyers successfully breach this barrier, the next target could be $9.00. Conversely, if resistance holds, a retracement to $7.20 is probable before another breakout endeavor.