Raydium: Assessing RAY’s potential price drop to $2.20

• Raydium’s token, RAY confronted huge promoting strain as its Open Curiosity declined, and the Funding Price went unfavorable for the primary time in months. 
• Market sentiment remained bearish as merchants panic-sell, growing Raydium’s community exercise and buying and selling quantity. 

Raydium [RAY]  has confronted market uncertainty as rumors of Pump.enjoyable launching its Automated Market Maker (AMM) liquidity pool induced huge investor sell-offs.

With the launch of the primary check token, $CRACK, on Pump.enjoyable’s AMM pool, RAY traders are nervous about its future within the Solana ecosystem. 

In line with CoinMarketCap, RAY has seen its worth drop under the $4.20 key assist degree, dealing with a 21.04% worth dip. The buying and selling quantity rose by 65.74% within the final 24 hours, on the time of writing. 

Raydium’s worth motion on the chart

RAY has damaged down from its right-angled ascending broadening sample on the every day chart and was buying and selling at $2.41, at press time. 

After Pump.enjoyable’s AMM information, the token fell under the $4.20 key assist degree, shedding greater than 27% of its market worth.

Because of the present market FUD surrounding Raydium, the following main assist sits at $2.20, in keeping with analyst Ali Martinez on X (previously Twitter).

The $4.00-$4.20 zone will now act as RAY’s new resistance.

Supply: X

Raydium’s on-chain metrics amid market information

RAY’s buying and selling quantity has risen 65.74% regardless of a worth dip within the final 24 hours, signaling elevated market exercise.

In line with TradingView information, the Relative Power Index (RSI) stood at 26, at press time, and MACD(12,26) sat at -0.6569, suggesting overselling and robust bearish momentum.

Raydium’s Open Curiosity has dropped by 33.85%, and its Funding Price has turned unfavorable for the primary time in months.

Supply: Coinglass

In line with DefiLlama data, Raydium’s Whole Worth Locked (TVL) has declined steadily within the final 72 hours and stood at $1.213B, as of this writing.

A sudden surge within the community’s lively addresses alerts huge panic promoting by traders based mostly on market information.

Supply: Artemis

Market sentiment: Is the FUD actual?

At press time, Raydium’s Lengthy-Quick Ratio was 0.93, indicating a barely unfavorable impartial zone based mostly on Coinglass information. This implies that the market has extra sellers than patrons.

With short-term, mid-term, and long-term shifting averages signaling a robust “Promote,” the FUD amongst merchants might be actual.

If patrons can defend the $2.70 degree with robust quantity, ignoring the FUD, Raydium may see a pattern reversal towards the $3.50-$4.00 key zone.

Nevertheless, if sellers’ dominance holds, RAY may dip additional to $2.20.