Raydium Price Encounters Resistance After Reaching 1,120-Day High

Key Takeaways

• Raydium’s (RAY) price reached an 1,120-day high.
• The price still trades over 100% under its all-time high.
• How much gas is left in the tank for RAY in this cycle?

Raydium has been one of the standout performers of 2023. Measuring from its all-time low price of $0.133, Raydium has increased by a staggering 5,800%, hitting a high of $7.95 today. 

Despite this rally, the altcoin still needs to double in price to reach a new all-time high. 

So, the key question is: Can Raydium reach new highs this cycle or will the upward movement run out of steam? Let’s look at the charts and find out.

RAY Price Reaches New Highs

The RAY price bottomed in early 2023 but did not move upward until October. Since then, it has traded inside a long-term ascending parallel channel, which has contained the upward movement’s highs and lows so far.

RAY cleared the $2.60 resistance area during its ascent, accelerating the increase. Today, Raydium’s price reached a high of $7.95, the highest price since November 2021. 

Despite its high, RAY did not close above the channel’s midline, which has obstructed the upward movement for several months.

Technical indicators are showing weakness. The Relative Strength Index (RSI) has generated a bearish divergence (green), and so has the Moving Average Convergence/Divergence (MACD) histogram, though not the actual indicator itself.

So, based on the weekly chart, the upward movement may have ended. 

What About the Wave Count?

Raydium’s wave count also makes it likely that the upward movement is over. According to the count, RAY is in the fifth and final wave of its upward movement that started in January 2023. 

The RAY price has reached two resistance levels that suggest the increase is over. Firstly, it reached the 2.61 external Fibonacci retracement of wave four (white). 

Secondly, it reached the middle of the aforementioned channel. Wave five often ends at the middle of a channel created by connecting waves two and four and projecting the trend line to the top of wave three. 

When combined with the divergences, this makes it likely that the RAY upward movement has ended.

The sub-wave count agrees with the long-term count. It shows that RAY is in the final sub-wave (black) of the final wave.

The price has also reached the 1.61 external Fibonacci retracement of the short-term correction, another sign of a prospective top.

Therefore, the RAY price action and wave count give a bearish prediction, implying that a lengthy correction will begin soon. The first important support area is at $4.20.

Significant Correction in 2025

Raydium has enjoyed a significant rally since the start of 2023, but momentum seems to be waning. There are bearish divergences at critical diagonal and Fibonacci resistance levels, making it likely that the upward movement has ended.

If a bearish trend reversal begins, RAY could undergo a lengthy correction that retraces a portion of the entire upward movement.