- Raydium has surged above the $2.85 level, indicating a bullish breakout in its market structure.
- However, the psychological resistance at $4 might pose some challenges for the cryptocurrency.
Raydium [RAY] has been on a consistent upward trend for the past eight days. After testing the $2.2 support level, Solana’s [SOL] decentralized exchange token has seen a 64.9% rally at the current time.
Two weeks ago, it was suggested that RAY bulls had a strong argument.
This prediction has proven to be accurate, despite a 27% price dip in early May from $3 to $2.2. With altcoins experiencing a surge in value, holders could potentially see further gains in the upcoming days and weeks.
Raydium Poised to Challenge $4 Next, But Will It Succeed?
Source: RAY/USDT on TradingView
On the 1-day chart, Raydium displays a bullish market structure. It has surpassed a significant lower high established in early March, resulting in a bullish flip in the swing structure of Raydium on the 1-day chart.
The previous lower high was at $2.85. On May 10th, the price broke past this local resistance, retested it as support two days later, and continued to climb. However, its upward momentum faced a challenge.
Despite breaking above $2.85 and approaching the $4 resistance, the Awesome Oscillator did not form a new higher high.
This bearish divergence indicates that RAY may struggle to reach $4 or break through this resistance on its first attempt. The CMF was above +0.05, indicating strong buying pressure.
Source: RAY/USDT on TradingView
On the 4-hour chart, the influx of capital has not been as consistent. The CMF was at -0.02 and had dropped to -0.26 just 36 hours before the time of writing.
Therefore, despite the bullish momentum indicated by the Awesome Oscillator, a lack of demand could hinder further gains.
Source: Coinalyze
Data from Coinalyze indicates a rise in speculative interest. The Open Interest increased from $7.8 million to $11.26 million within a day as Raydium surpassed the $3.2 local resistance.
The positive Funding Rate, along with the growing Open Interest, suggests bullish market expectations in the short term.
However, the bearish divergence on the 1-day chart could impede the rally or trigger a pullback from the $4 resistance level.
Disclaimer: The information provided is the writer’s opinion and does not constitute financial, investment, trading, or other types of advice.
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