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Raydium (RAY) has struggled to maintain its footing above the $2.85 resistance zone, a key level it briefly surpassed in late April. However, the altcoin’s upward momentum quickly waned as Bitcoin’s (BTC) bearish turn in early May dragged the broader crypto market lower.
Raydium Retests High-Volume Support Zone
After rallying to $2.49 in mid-April, Raydium encountered resistance and fell to $2.15 before rebounding to form a bullish order block. This high-volume support zone, located between $2.22 and $2.30, has emerged as a crucial area for RAY’s price action. At the time of writing, Raydium was trading just above this zone, hinting at a potential reaction.
The Accumulation/Distribution (A/D) indicator has shown higher lows since early April, suggesting rising demand for RAY. However, recent selling pressure has pushed the A/D line downward, increasing the risk of further declines. If the A/D continues its downward trajectory, the $2.15 support may falter, paving the way for a drop toward the $2.00–$2.10 demand zone.
Liquidation Heatmaps Signal Bearish Targets
According to the 1-month Liquidation Heatmap, bearish momentum appears to be gaining strength. A cluster of liquidation levels has formed between $1.97 and $2.08, highlighting a potential target for short-sellers. Additionally, the 24-hour Heatmap identifies $2.20 as a key short-term price target, with cascading long liquidations potentially pushing Raydium’s price toward $2.10 or lower.
Also Read: Raydium Launches ‘LaunchLab’ to Take On Pump.fun in Solana Memecoin Wars
Can Bitcoin’s Rebound Save Raydium?
Bitcoin’s next move could play a decisive role in Raydium’s price action. If BTC manages to reclaim the $94.80K local resistance, a bullish reversal for Raydium could follow. However, with the Money Flow Index (MFI) dipping below the neutral 50 level, traders should remain cautious as bearish dominance grows.
For now, Raydium investors should brace for potential volatility as the token struggles to maintain its current support levels. A decisive move below the $2.15 mark could spell trouble, while a strong Bitcoin recovery may offer a lifeline for Raydium’s bulls.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
