Raydium’s 26% rally cools down below $1.80 — Is downside liquidity calling for RAY?

Raydium rallied on the price charts as the broader cryptocurrency market saw green across the board.

In this case, the timing was particularly interesting. Especially since it followed Injective’s Solana expansion which strengthened RAY’s fundamentals. To be specific, Injective’s Solana launch introduced another potential source of trading activity for Raydium’s decentralized exchange.

Reportedly, Raydium joined the rollout as a day-one liquidity partner, granting Injective assets immediate access to Solana blockchain liquidity.

Here, it is also important to note that Raydium accounts for over 90% of memecoin DEX trading volume on Solana. In fact, its cumulative tokenized stock volume recently surpassed $5 billion on the blockchain.  

The aforementioned integration will also enable participants to trade Injective ecosystem tokens through Raydium, eventually funneling additional swaps and liquidity.

For its part, RAY’s price gained by 15.19% over 24 hours. Its trading volume simultaneously surged by 125.5% too, hinting at greater market participation. 

Are retail traders on board with RAY?

While the altcoin’s price action did surge, so did the retail Futures activity. This pushed trading frequency into the “Too Many Retail” area. In fact, this metric’s reading implied that smaller traders increasingly entered Futures trading as RAY’s price pushed higher.

Furthermore, the 90-day Futures Taker CVD also maintained taker-sell dominance across the derivatives market.

Therefore, aggressive sellers likely started taking in profits after RAY’s sharp price appreciation.

Hence, retail traders chased the rally while taker activity revealed persistent selling. Taken together, these findings might imply possible exhaustion after the rapid price expansion.

What happened after RAY swept its swing high?

On the 24-hour chart, Raydium’s [RAY] price rally extended by roughly 26.16%. Thanks to the same, it briefly hit the $1.85 swing high, before a retracement on the charts. 

Notably, the move above previous highs appeared to grab nearby internal liquidity instead of establishing $1.85 as resistance. Subsequently, the price then slipped below the $1.80-resistance level, with the token trading at around $1.77 at press time. 

The MACD indicator remained supportive after crossing above its Signal line. Furthermore, its positive histogram reading of 0.0341 suggested that the bullish pressure had not fully faded after the retracement. 

The RSI indicator, however, breached 72.27, placing the token in overbought conditions. 

Ultimately, reclaiming the $1.80-resistance would be crucial for an upside continuation. A sustained rejection, however, could instead reinforce the pullback as price gravitates towards denser lower liquidity.

Downside liquidity strengthens pullback risk

With reference to the technical price structure, RAY’s latest rally may have already collected much of the nearby upper liquidation liquidity. Attention can now shift towards the substantially denser liquidation concentrations below the press time price.

Notably, the strongest visible clusters can be seen around the $1.64–$1.66 region. All while the taker-sell dominance and overbought RSI conditions increased the significance of a rejection around the $1.80-area.

Persistent rejection around that key level could therefore push RAY towards the $1.64–$1.66 liquidity pool before another sustained recovery attempt.

However, such a correction would not invalidate the broader structure while $1.2202 remains protected.

Final Summary

• Injective strengthened Raydium’s growth narrative, but Futures sellers challenged the rally.

• RAY lost $1.80 after its daily swing-high sweep, increasing near short-term price correction risk.