Raydium price under threat: Will $2.2 support prevent further losses?
The Raydium bulls were fighting an uphill battle after a night's forced march and on empty stomachs.
- RAY maintained a bearish 1-day market structure, with sellers firmly in control of short-term momentum.
- The liquidation heatmap highlighted the threat of an 8% price drop in the short term.
In mid-May, Raydium [RAY] broke above the $2.85 level to make a bullish market structure break.
The high buying volume two weeks ago, combined with the momentum and structure, looked likely to propel RAY to the $4 mark. The Bitcoin [BTC] reset from $111k over the past ten days saw these bullish hopes shattered.
At press time, Raydium bulls were battling for control of the early May lows, hoping to defend the level as support.
Do Raydium bulls have a good chance of holding the $2.4 support?
Naturally, RAY’s structure has been range-bound since April, with price oscillating between $2.4 and $3.4. The mid-range level sat at $2.9, and the brief breakout in May now looks like a fakeout.
Over the past two weeks, the CMF has fallen well below -0.05. This indicated severe selling pressure and sizable capital outflow in the RAY market.
With the token threatening to free-fall below the range low, an influx of buying pressure would be welcome.
The A/D indicator showed no such sign.
It has slowly fallen lower over the past three weeks, reflecting weakness from the bulls. The RSI also underlined firm bearish momentum after Raydium’s plunge from $3.
Liquidation data paints a risky picture
The 1-month Liquidation Heatmap from Coinglass showed that the $2.2-$2.3 region was a target for RAY in the coming days. It had a sizeable amount of liquidations and lay close to the current market price.
Hence, a Raydium price move lower was expected. It could reverse from the $2.2-$2.25 region, just below the range lows, and initiate a rally.
However, AMBCrypto noticed that the 3-month liquidation heatmap revealed a sizable chunk of liquidity at the psychological $2 level as well.
Therefore, if RAY bulls were unable to stop the bears at the $2.2 mark, another 10% drawdown could be around the corner.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
