Raydium’s [RAY] price has experienced an impressive surge of 15% in the past 24 hours, propelling it to $7.50 as of the latest update. This upward momentum is a result of a cup-and-handle pattern formation, hinting at a potential breakout.
Nevertheless, the crucial $8 resistance level looms as a significant obstacle that must be overcome to pave the way for further price appreciation. As a result, traders are keenly observing whether RAY can maintain its current uptrend or if it will encounter pushback.
RAY’s Price Movement Indicates a Favorable Breakout Scenario
There has been a formation of a cup-and-handle pattern for RAY, which typically signifies a continuation pattern. The price has been steadily recovering from a recent dip, aiming to breach the major resistance level at $8.01.
If the buyers manage to sustain their dominance, a breakout towards $9.00 may emerge, driving more bullish momentum. Conversely, failing to hold above $8.01 could trigger a regression towards $7.20, where immediate short-term support is anticipated.
Are Engaged Addresses Contributing to Raydium’s Rally?
On-chain data reveals that the number of daily active addresses has climbed to 12, indicating heightened market participation.
Despite occasional fluctuations, a consistent increase in active addresses generally serves as a positive sign, reflecting an uptick in network utilization.
If this trend of growth in active addresses continues, it could signal a stronger demand for RAY, bolstering its price surge. Conversely, a sudden drop in active addresses could imply diminishing interest.
Technical Indicators Affirming Bullish Momentum
Technical indicators are aligning with a bullish bias, with the Relative Strength Index (RSI) hovering at 58.64, depicting a robust yet not excessively overbought market.
Moreover, the 9-day Moving Average (MA) currently stands at 6.87, crossing above the 21-day MA at 6.82, indicating a bullish crossover.
These indicators lend support to the cup-and-handle structure, reinforcing the outlook for an upward breakout. However, a potential overshoot with RSI surpassing 70 might trigger a short-term corrective phase.
NVT Ratio Indications Point to a Potential Cooling Off Period
While the price action remains vigorous, the NVT ratio has dipped to 1.15, signaling heightened transactional activity relative to the market capitalization.
Although a lower NVT ratio typically signifies healthy network usage, sharp declines could imply increased volatility.
In the event of escalated selling pressure, RAY might retreat momentarily to $7.20 before resuming its breakout endeavors. However, consistent transaction volumes could help sustain the ongoing rally.
Final Thoughts: Can Raydium Surpass the $8 Mark?
RAY exhibits robust bullish momentum, supported by increasing active addresses, positive RSI readings, and a bullish moving average crossover. Yet, the formidable $8.01 resistance level continues to pose a substantial challenge.
If the buying pressure overcomes this hurdle, targeting $9.00 could be the next logical step. Conversely, if the resistance proves resilient, a fallback to $7.20 is probable before a renewed breakout attempt.