- RAY has experienced a 20% drop due to increased selling pressure and low demand.
- Will the altcoin see a price recovery if the $5 support level holds?
Raydium [RAY], a leading memecoin trading platform on Solana, has witnessed a decline of over 20% in its token value over the last two weeks.
Currently, RAY is hovering around $5 but is facing significant selling pressure from centralized exchanges. The question remains whether the $5 support will remain intact or break.
RAY Facing Challenges
Source: RAY/USDT, TradingView
After reaching a peak of $6.5 in mid-November, RAY entered a consolidation phase. However, buying pressure dwindled, leading to increased sell pressure.
In December, RAY’s demand turned negative, as indicated by the RSI dropping below the 50 median level on the 12-hour chart. This has hindered any potential recovery, keeping the altcoin within the lower end of its trading range.
If sell pressure continues to rise, the $5 support level could be breached in the coming days.
Source: RAY/USDT, TradingView
Nevertheless, the $5 level holds significant psychological and Fib retracement support, which could bolster bullish momentum.
A breach of this level could result in a lower low and a shift towards a bearish market structure, with $3.6 being the next potential support level.
Conversely, defending the $5 support could pave the way for RAY to target $7.5 and $9.5.
Sell Pressure on RAY
Source: Santiment
Santiment data reveals a steady increase in sell pressure (exchange supply, red line) throughout November.
During the same period, external demand for RAY (supply off exchanges, yellow) declined, indicating that short-term holders were taking profits in November and December.
The sell-off at $6.5 halted RAY’s upward momentum, and any reversal will depend on easing this pressure.
While the current sell-off may present a buying opportunity for long-term investors, short-term traders are advised to proceed with caution.
Check out the Raydium [RAY] Price Prediction for 2024-2025
For swing traders, a weekly candlestick close above $5 could indicate strength and a potential buying window, with a higher chance of RAY targeting $7.5 in the near term.
Disclaimer: The information provided is the author’s opinion and does not constitute financial, investment, or trading advice.
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