Raydium (RAY) broke above $2.85 in mid-May, signaling a bullish market structure break that fueled optimism for a rally toward the $4 mark. However, that momentum quickly faltered as Bitcoin’s recent reset from $111,000 caused market-wide bearish sentiment, pulling RAY back into a range. At press time, RAY was attempting to defend the early May support zone around $2.4, which now stands as a critical line in the sand for bulls.
Since April, RAY’s price action has remained range-bound between $2.4 and $3.4. The brief breakout in May now appears to be a false move, as indicators point to weakening bullish pressure. The mid-range level of $2.9 has flipped back to resistance, compounding the difficulty for bulls to regain control.
Technical Indicators Point to Selling Pressure
The Chaikin Money Flow (CMF) dropped below -0.05 over the past two weeks, highlighting significant capital outflow and increasing selling pressure. Meanwhile, the Accumulation/Distribution (A/D) line has steadily declined over the last three weeks, confirming a lack of bullish conviction.
Momentum indicators echo the bearish outlook. The Relative Strength Index (RSI) dipped well below the neutral 50 mark following the rejection at $3, indicating strong downside momentum. Unless there is a sudden influx of buying volume, RAY risks sliding below the critical $2.4 support, potentially triggering further losses.
Liquidation Heatmaps Signal $2.2 as Key Pivot
Liquidation data from Coinglass adds another layer of concern for Raydium holders. The 1-month liquidation heatmap shows heightened liquidity between $2.2 and $2.3, suggesting this region is a likely magnet for price action. If RAY fails to find support at $2.4, a drop into this zone is probable.
Also Read: Raydium (RAY) Price Analysis: Will the $2.15 Support Hold Amid Bitcoin’s Bearish Turn?
Further downside could extend toward the $2 psychological level, according to the 3-month heatmap, which reveals a large concentration of liquidity there. If bears break through $2.2, Raydium could see an additional 10% decline before any significant support kicks in.
While bulls may mount a defense at current levels, market indicators and liquidation data suggest the path of least resistance is down—making the $2.2 region the next critical battleground.
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.
