Raydium – How RAY bulls could soon break the $4 barrier
Going long now in anticipation of a Raydium breakout past $4 might be risky.
Key Takeaways
Apart from the steadily rising TVL, the Raydium price chart highlighted why holders have reason to remain bullish. A breakout past $4 would trigger the next rally.
Raydium [RAY] was trending higher in recent weeks. Over the past 24 hours, it has gained 8.18%, and 15.56% over the past week, measured at the time of writing.
The Raydium token has shown strength relative to Bitcoin [BTC] and Ethereum [ETH].
Since May, the Total Value Locked (TVL) has been trending higher. July and early August saw heightened revenue, likely from increased trading activity. Over the past two weeks, the revenue has dropped.
The increasing TVL appeared to be an encouraging factor for long-term RAY bulls. It implied increased liquidity in the protocol and greater trust from users as it attracts more capital.
However, the TVL of a DeFi protocol will increase due to the rising value of the asset locked, even without new deposits.
The Solana [SOL] uptrend from $120 in mid-April to $211, at the time of writing, helped explain the increasing Raydium TVL.
What is in store for RAY prices next?
The relative strength of RAY against BTC or ETH was an immediately visible positive for short-term bulls. The 1-day price chart showed that the market structure saw a bullish break earlier in August.
This came following the move past the local high at $3.43. Since then, the price has oscillated about this level in a consolidation phase.
At press time, the OBV was steadily rising to show buying pressure. The RSI was above neutral 50, reflecting that momentum was on the buyers’ side.
The 4-hour chart showed that RAY was trading within a range that reached from $3.11 to $4. In recent hours, the token saw a rejection at the range high and might retrace to the mid-range support at $3.55.
Neither the OBV nor the RSI displayed a bearish divergence on the 4-hour chart. Traders should expect the range to continue until it is broken and $4 is flipped to support.
Going long now in anticipation of a Raydium breakout might be risky.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
