Raydium slides 27%, breakout delayed: THESE levels will set RAY’s next move

Raydium has shed 27% in the past nine days to retest a local demand zone. While a bullish reaction is anticipated, traders should beware of short-term volatility around the $2-$2.1 area. Raydium [RAY] was unable to transcend the $2.85 resistance zone. It briefly floated above this resistance towards the end of April, but quickly fell as Bitcoin’s [BTC] momentum turned bearish in early May. While BTC hopes for a bullish recovery, Raydium investors might have to prepare for an extended consolidation phase. Demand has improved over the past five weeks; however, it hasn’t yet tipped the scales toward a breakout. RAY retests the high-volume support zone Source: RAY/USDT on TradingView In mid-April, Raydium’s rally was briefly halted at the $2.4 level. It fell to $2.15 before surging beyond the previous swing high at $2.49. This price action carved out a bullish order block, also known as a high-volume support region, between $2.22 and $2.30. At the time of writing, the price hovered just above this zone, preparing for a possible reaction. The A/D indicator has formed higher lows since early April, showing increased demand for Raydium’s utility token. However, recent selling pressure has caused the A/D line to decline. If the A/D continues dropping, the $2.15 support level may not hold. The MFI has fallen below neutral 50, indicating bearish dominance is growing. While it hasn’t confirmed a breakdown, traders should remain cautious. Liquidation Heatmaps highlight bearish targets Source: Coinglass The 1-month Liquidation Heatmap agreed with the findings from the technical analysis. It also showed that continued downward momentum was likely for RAY. The build-up of liquidation levels at $1.97-$2.08 marked a bearish price target. Source: Coinglass Additionally, the 24-hour Heatmap identifies $2.20 as a short-term price target. A cascade of long liquidations at this level could push Raydium’s price toward $2.10 or lower. Hence, traders should anticipate a retest of the $2.00–$2.10 demand zone within the next 24–48 hours. A bullish rebound may follow, but it hinges on Bitcoin surpassing $94.80K local resistance. Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion Source: https://ambcrypto.com/raydium-slides-27-breakout-delayed-these-levels-will-set-rays-next-move/