Raydium (RAY) Price Jumps 75% in a Month as Signals Suggest a Correction May Follow

Key Takeaways

• RAY’s price has surged 75% in the past month, pushing above $3 for the first time since February.
• The token is overbought, and the EFI has flattened, hinting that bullish momentum may be weak.
• If selling pressure increases, RAY’s price could drop toward the $2.20 support zone in the short term.

RAY, the native token of Solana-based decentralized exchange Raydium, could be on the brink of a significant correction. This development comes after the Raydium token price registered a 75% increase within 30 days.

The price increase pushed RAY above $3, which it last touched on February 24. However, warning signs are emerging, suggesting the bullish momentum might be losing steam.

Here is what could be next for RAY, according to several indicators.

RAY Now Overbought

As of this writing, the Raydium token price is $3. According to the daily chart, the cryptocurrency retested this value after breaking out of a descending channel between Jan. 25 and March 22.

Following the change in trend, which saw RAY’s price hit higher lows and highs, technical indicators reveal that it could be time for the rally to cool down. One indicator predicting this is the Relative Strength Index (RSI).

The RSI measures momentum using the size and speed of price changes. It also tells when an asset is overbought or oversold.

Readings above 70 mean an asset is overbought, while those below 30 are oversold. At press time, the RSI on the RAY/USD chart stands at 74.46, indicating that the token is oversold and a pullback could be next.

However, the RSI is not the only indicator supporting this. On the same timeframe, the Money Flow Index (MFI), which measures buying and selling pressure, rose briefly to 82.73 on Sunday, April 27.

Besides measuring buying and selling pressure, the MFl spots oversold or overbought conditions. A rating below 20 indicates an oversold status, while those above 80 signify overbought points.

Therefore, the current MFI reading aligns with the RSI position. If this trend continues, the Raydium token price could drop significantly in the coming days.

RAY Price Prediction: Lower Highs Next

Regarding its short-term outlook, CCN noticed that the Elder Force Index (EFI) has remained flat. This EFI reading indicates that bulls are stepping back and pushing the Raydium token price higher.

If this trend remains the same or worsens, the RAY’s price could find it challenging to continue its rally toward $4. Should that be the case, the altcoin could face resistance near $3.11.

In that scenario, the market value might drop to the underlying support at $2.20. Conversely, if RAY’s price breaches the overhead resistance, this prediction might be invalidated.

If that were to happen, Raydium might extend its gains into May, and the price could rally to $4.18.

This could be as high as $5.9 in a highly bullish market.