- RAY’s Open Interest surge underlined growing market activity, potentially signaling an upcoming price move
- A decline in network activity may limit further upside, depending on key resistance levels
Raydium [RAY] has been seeing strong market activity lately, with the altcoin trading at $2.32, up by 11.73% at press time. Thanks to rising Open Interest and increasing social dominance, RAY is now attracting attention from traders and investors.
Will RAY maintain its upward momentum and break key resistance levels?
Open Interest surge and social buzz analysis – What does it mean for RAY?
RAY registered a 65.47% hike in Open Interest, climbing to $21.86 million. This surge alluded to growing market interest, with more capital entering the token. Here, it’s worth noting that a significant uptick in Open Interest typically signals an impending price movement, which could lead to volatility.
Therefore, traders should closely monitor RAY’s price action. Especially as the prevailing surge suggests the potential for either a breakout or a pullback, depending on how market conditions unfold.
Along with the Open Interest surge, RAY noted a hike in social volume and dominance. In fact, Social dominance rose from 0.192% to 0.407% – A sign of growing buzz in the crypto community.
However, this surge came from relatively low levels, which means there could still be room for further growth. Additionally, this uptick in social engagement might fuel buying pressure, potentially fueling a rally if the trend continues.
Source: Santiment
Breaking down Raydium’s price action – Key levels to watch
Raydium’s technical indicators pointed to a pivotal moment as well. At press time, RAY was trading around $2.32, testing a key support level. If RAY holds this price, a potential rebound could occur. However, the RSI stood at 27.24, indicating that the token was in oversold territory.
The moving average cross highlighted a bearish trend, but if RAY manages to break through resistance at $2.50, it could lead to a bullish reversal. Traders should watch for a breakout above $2.40. Especially as this would signal further upside potential.
Source: TradingView
Is RAY losing steam? Decline in activity signals caution
Despite the price hike, RAY registered a decline in daily active addresses and transaction counts. At press time, daily active addresses were recorded at just 8, with a transaction count of 2, according to Santiment.
This decline hinted at a pause in market activity, possibly indicating consolidation before the next major move. If network activity picks up, Raydium could continue its rally.
The liquidation heatmap for RAY revealed significant liquidations between $2.30 and $2.40, with heavy concentration at the $2.40-price level.
This suggested that Raydium might face strong resistance around this range, which could trigger a wave of liquidations if the price fails to break through.
Source: Coinglass
Despite the potential for a breakout, RAY must clear resistance at $2.50 to continue its upward momentum.
If it fails to break this level, a correction could follow. In conclusion, RAY could continue its climb, but only if it successfully navigates the resistance levels and the market conditions align.
