Quick Summary
Raydium (RAY) dropped by 7.31 percent over the past 24 hours and is currently going at $2.33
Market cap declined to 675.23M; market unlocked is 1.31B
The volume has decreased by 15.48 percent to stand at 45.03M dollars.
TVL is solid with $1.81B, which makes RAY undervalued
An oversold indication is suggested by RSI at 34.30, however the momentum is light
The value of CMF is -0.27 indicating continued outflow of capital
Price Forecast
The price can fall to $2.00 in case of breaking the support at $2.30
A bullish scenario has resistance at $2.95 and $3.50
Price decrease was met with bearish momentum in Raydium (RAY)
Market Context
The most important bank, Raydium (RAY), a decentralized exchange (DEX) on Solana, has suffered setback.
The 7.31 percent decline in 24 hours pushed the Raydium (RAY) price to the lowest value of 2.33 dollars due to conditions of market volatility.
Such a decline erased most of its valuation, cutting the company market cap down to $675.23 million, though its uncapped valuation still stands at $1.31 billion, which shows a stark contrast of the investor uncertainty today.
Volume Dips, Market Indicators Of Weakening Momentum
A drastic decrease in the level of trade of 15.48 percent to a new low of 45.03 million dollars also shows that there is a slackened pace and the traders are losing interest.
This has driven the market cap/volume ratio as high as 6.58 per cent, which is normally described as a warning sign that momentum is deteriorating.
Nevertheless, the amount of Total Value Locked (TVL) on Raydium is stable at 1.81 billion dollars, and this results in the market cap to TVL ratio to be 0.3761.
Through DeFi, this might imply that the token is undervalued — provided the fundamentals are good.
Technical Indicators Tell a Cautionary Tale
Technicals do not take any serious signs of recovery yet.
- The 14-day Relative Strength Index (RSI) stands at 34.30 which is close to becoming oversold.
- The middling value RSI shows a bigger divergence and prolonged bearishness at 49.66.
- Moving averages on a daily basis are rolling over to confirm a near-term bearish inclination.
- The Chaikin Money Flow (CMF) is also -0.27, which indicates outflow of funds and weak accumulation. CMF less than zero is normally the warning sign, and unless large volume inflows come into the picture, subsequent drawdowns are in the offing.
The Levels to Study the Price
Price action wise:
- The support is at the immediate (2.30) where a fall below this could see RAY go to test the psychological level of 2.00
- The short term is held at $2.95
- The bullish breakout could move RAY to the $3.50, and it must be during a risk-on rally supported on high volume
- The chart also depicts lost higher-low support, which has been one of the earliest indicators of an impending continuation of the trend on the downside.
So, What is Next for RAY Investors?
Even though the market correction is severe, the buyers who prefer to hold assets in the long term may see it as a buying signal as the TVL has been at the high level.
But now technical indicators and the volume trend tell us to be very careful.
Support that should be noticed by investors and traders is at 2.30. It may also see a bounce giving a relief bounce, however, once that level is broken with high volume, additional downside will be very much on the cards.