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- Raydium has broken above the $2.85 level, representing a bullish structure break.
- Its approach of the psychological $4 resistance could be met with setbacks.
Raydium [RAY] has been in a steady uptrend over the past eight days. After retesting the $2.2 support zone, Solana’s [SOL] decentralized exchange token has rallied 64.9% at press time.
Two weeks ago, it was reported that RAY bulls have a strong case.
It has proved correct since then, although early May saw a 27% price dip from $3 to $2.2. Recently, altcoins have been surging higher, and holders might witness further gains in the coming days and weeks.
Raydium to test $4 next, but can it break through?
Source: RAY/USDT on TradingView
On the 1-day chart, Raydium has a bullish market structure. It has breached a significant lower high set during early March. In doing so, the swing structure of Raydium on the 1-day chart was flipped bullishly.
This previous lower high was $2.85. On Saturday the 10th of May, the price surged past this local resistance, and two days later, retested is as support before bounding higher. However, its ascent came with a challenge.
The Awesome Oscillator has not formed a new higher high, even though the price broke $2.85 first, and was not nearing the $4 resistance.
This bearish divergence could see RAY unable to challenge $4, or unable to break this resistance on the first try. The CMF was above +0.05, a sign of strong buying pressure.
Source: RAY/USDT on TradingView
On the 4-hour chart, the capital inflow has not been as swift or sure. The CMF was at -0.02, and had dipped to -0.26 just 36 hours before the time of writing.
Hence, even though the Awesome Oscillator showed bullish momentum, a lack of demand could stall further gains.
Source: Coinalyze
Data from Coinalyze showed speculative interest. The Open Interest surged from $7.8 million to $11.26 million within a day as Raydium climbed past the $3.2 local resistance.
The Funding Rate was positive, and alongside the rising Open Interest, showed bullish market expectations in the short-term.
However, the 1-day bearish divergence could stall the rally or induce a pullback from the $4 resistance.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
