Raydium’s RAY token has soared past $3 but may struggle to maintain momentum | Credit: Hameem Sarwar
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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.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
