Raydium hits 3-month high – Is RAY’s $4 target within reach?

Key Takeaways

Raydium’s July surge in volume, revenue, and whale activity fueled a 3-month price high, but rising exchange inflows hint at profit-taking pressure.

Since dipping to $2.44 on the 2nd of August, Raydium [RAY] has climbed within an ascending channel.

The rally peaked at $3.58 on the 9th of August before easing to $3.477 by press time – its highest level in three months.

Over the same week, 24-hour trading volume surged 424% to $322.66 million, signaling heightened market participation.

Raydium’s July by the numbers

According to Solana Sensei, a Solana OG, Raydium delivered strong July results despite what he sees as undervaluation.

The protocol handled $40.1 billion in monthly volume – a 71% month-over-month increase – and generated $18.33 million in revenue, up 137% from June.

In addition, the team repurchased 3.45 million RAY worth roughly $9.5 million, pushing total buybacks to $190 million to date.

Similarly, analyst Allen noted that Raydium’s Annualized Revenue rose 91.6% to $85.35 million, while Annualized Fees climbed 54% to $468.63 million over the past month, per Artemis data.

Whales stay active in spot markets

Naturally, strong network metrics have coincided with heavy whale activity. CryptoQuant’s Spot Average Order Size data showed consistently large transactions over the past month.

This trend was echoed in Coinalyze’s Aggregated Buy/Sell Volume data, with $5.28 million in buys against $4.25 million in sells – a positive Buy/Sell Delta of 1.04 million RAY.

Such imbalances often precede further price appreciation.

Profit-taking emerges at local highs

As expected, as Raydium broke out, investors who had held underwater returned to cash out.

According to CoinGlass, Raydium’s Spot Netflow surged to reach a 7-week high of $3.63 million.

Usually, a positive Netflow means more tokens entered exchanges than left, a clear sign of aggressive selling. Historically, increased exchange deposits have preceded lower prices because of intense downward pressure. 

Momentum indicators still lean bullish

According to AMBCrypto’s analysis, RAY surged as buyers returned in the spot market to accumulate it. 

For that reason, the altcoin’s Positive index of Directional Movement Index (DMI) surged to 39.4, while -DI dipped to 22.

At the same time, its Relative Vigor Index (RVGI) made a bullish crossover, hitting 0.0251. 

Naturally, when momentum indicators are in such a manner, they signal a strong upward momentum and its continuation potential. 

Having said that, if buyers, especially whales, keep their positions, RAY could reclaim $3.70 and test resistance at $4.10. Conversely, if profit-taking accelerates, a retrace toward $2.84 remains on the table.