Journalist
Posted:
- Raydium’s token, RAY faced massive selling pressure as its Open Interest declined, and the Funding Rate went negative for the first time in months.
- Market sentiment remained bearish as traders panic-sell, increasing Raydium’s network activity and trading volume.
Raydium [RAY] has faced market uncertainty as rumors of Pump.fun launching its Automated Market Maker (AMM) liquidity pool induced massive investor sell-offs.
With the launch of the first test token, $CRACK, on Pump.fun’s AMM pool, RAY investors are worried about its future in the Solana ecosystem.
According to CoinMarketCap, RAY has seen its price drop below the $4.20 key support level, facing a 21.04% price dip. The trading volume rose by 65.74% in the last 24 hours, at the time of writing.
Raydium’s price action on the chart
RAY has broken down from its right-angled ascending broadening pattern on the daily chart and was trading at $2.41, at press time.
After Pump.fun’s AMM news, the token fell below the $4.20 key support level, losing more than 27% of its market price.
Due to the current market FUD surrounding Raydium, the next major support sits at $2.20, according to analyst Ali Martinez on X (formerly Twitter).
The $4.00-$4.20 zone will now act as RAY’s new resistance.
Source: X
Raydium’s on-chain metrics amid market news
RAY’s trading volume has risen 65.74% despite a price dip in the last 24 hours, signaling increased market activity.
According to TradingView data, the Relative Strength Index (RSI) stood at 26, at press time, and MACD(12,26) sat at -0.6569, suggesting overselling and strong bearish momentum.
Raydium’s Open Interest has dropped by 33.85%, and its Funding Rate has turned negative for the first time in months.
Source: Coinglass
According to DefiLlama data, Raydium’s Total Value Locked (TVL) has declined steadily in the last 72 hours and stood at $1.213B, as of this writing.
A sudden surge in the network’s active addresses signals massive panic selling by investors based on market news.
Source: Artemis
Market sentiment: Is the FUD real?
At press time, Raydium’s Long-Short Ratio was 0.93, indicating a slightly negative neutral zone based on Coinglass data. This suggests that the market has more sellers than buyers.
With short-term, mid-term, and long-term moving averages signaling a strong “Sell,” the FUD among traders could be real.
If buyers can defend the $2.70 level with strong volume, ignoring the FUD, Raydium could see a trend reversal toward the $3.50-$4.00 key zone.
However, if sellers’ dominance holds, RAY could dip further to $2.20.
