Raydium Price Analysis: A Cup-and-Handle Pattern Signals Further Gains
Raydium Price Surges – Raydium (RAY) has experienced an impressive 15% price surge in the last 24 hours, pushing its value to $7.50 at press time. This bullish move follows the formation of a cup-and-handle pattern, a technical setup that typically signals a potential breakout. As the price approaches the key $8 resistance level, traders are keenly watching whether RAY can maintain its upward momentum or face a potential rejection.
Bullish Breakout Setup: RAY Targets $9.00
RAY’s price action shows signs of a bullish breakout, with a steady recovery from a recent dip and a continued push towards $8.01—the major resistance level. A breakout above $8.01 could trigger a surge toward $9.00, further accelerating the bullish trend. However, if RAY fails to sustain its position above $8.01, a pullback to $7.20 could occur, where short-term support is located. As of now, RAY’s price remains at a crucial juncture, and traders are closely monitoring the price action for a possible breakout or reversal.
Active Addresses Reflect Increased Market Engagement
On-chain data reveals that daily active addresses for Raydium have increased to 12, indicating a rise in market participation. A steady growth in active addresses is typically a bullish signal, suggesting growing interest and network activity. If this trend continues, it could indicate stronger demand for RAY, supporting further price appreciation. However, a sudden drop in active addresses could signal weakening interest and potential downside.
Technical Indicators Confirm Bullish Momentum
Momentum indicators are confirming the ongoing bullish trend for RAY. The Relative Strength Index (RSI) is currently at 58.64, indicating a strong market without being overbought. Additionally, the 9-day Moving Average (MA) at $6.87 has crossed above the 21-day MA at $6.82, marking a bullish crossover. These technical indicators support the ongoing cup-and-handle formation, reinforcing the potential for an upward breakout.
NVT Ratio Suggests Possible Volatility Ahead
While the price action remains strong, the NVT ratio has dropped to 1.15, suggesting higher transaction activity relative to the market cap. Although a lower NVT ratio typically indicates healthy network usage, sharp declines can also point to increased volatility. If selling pressure builds, RAY could briefly retrace to $7.20 before making another attempt to break out. However, consistent transaction volumes could help sustain the current rally.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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