Raydium [RAY] has experienced a significant 62% increase in value within the last eight days. The emergence of Official Trump [TRUMP] on the Solana [SOL] network likely played a part in boosting the demand for RAY, although the uptrend had initiated prior to the introduction of the TRUMP meme coin.
Having fluctuated between $4.02 and $6.30 since November, Raydium finally broke out of this range on the 18th of January, with its previous highs now acting as a support level.
Raydium Breaks Out of Range Formation, Poised for Further Upside
The strong interest in Raydium is evident from its price charts. Despite the period of range-bound trading over the past two months, the On-Balance Volume (OBV) has shown a continual upward trend, indicating sustained buying pressure.
Furthermore, the breakout above the range highs was accompanied by significant trading volume, showcasing strong conviction among investors. By leveraging Fibonacci retracement and extension levels based on the October-November rally from $1.57 to $6.50, it appears that the next price targets for RAY bulls stand at $7.66 and $9.54. Furthermore, with the daily Relative Strength Index (RSI) above 60, the bullish momentum seems robust.
Given the consistent buying pressure, it is likely that Raydium will progress towards the $9.54 mark in the coming days and weeks.
From a liquidity standpoint, the 3-month liquidation heatmap reveals notable liquidity pockets at $8 and $7.12, with $7 serving as another pivotal zone. Given the recent retest of the $6.30 range highs, an immediate decline to $7.12 appears improbable.
Instead, a move towards $8 followed by a potential pullback and consolidation in the $7-$7.10 area looks more probable.
In line with this, the 1-week liquidation heatmap emphasizes the liquidity concentration around $8, specifically within the $7.93-$8.21 range, suggesting that RAY prices may be drawn towards this region.
On the downside, lower levels like $7.12 and $6.96 exhibit less liquidity, indicating a smoother path if prices were to approach them. A move towards $8, coupled with a consolidation phase, could potentially set the stage for increased liquidity to the south, which Raydium’s price action might target before resuming its upward trajectory.
Disclaimer: The views expressed in this article are not financial, investment, or trading advice; they solely represent the writer’s perspective.