Raydium Coin (RAY) Surges Over 20% as Bullish Rounding Bottom Pattern Forms

Raydium Coin (RAY), the Solana-based DeFi protocol token, surged over 20% in the past 24 hours

Raydium Coin (RAY), the Solana-based DeFi protocol token, has surged more than 20% in the past 24 hours, according to Benzinga Pro+.

As of Monday morning, RAY was trading around $3.79 to $3.80. The rally pushed its market cap to over $1.1 billion, while trading volume soared to over $204.9 million, a nearly 57% increase.

The technical analysis suggests that the Raydium price may be setting up for a massive breakout as multiple technical indicators, chart patterns, and analyst commentaries point towards a potential surge.

RAY Coin Forms A Bullish Rounding Bottom Pattern

Crypto analyst Ijaz Awan shared a bullish outlook on X (formerly Twitter), highlighting a “rounding bottom” pattern on RAY’s daily chart. This pattern, which is known for signaling long-term trend reversals, has a neckline at $4.20.

"If it can make its way to the neckline, I see a path to $7 range, more than 2x from current range," Awan wrote.

The chart shows a clear accumulation zone and rounded consolidation, which is usually observed during the base-building phase of a major trend. This type of base formation is typically followed by a strong breakout. The $4.20 neckline will be the next key resistance level to watch out for. A confirmed break above this level could trigger a parabolic move in the RAY token price.

While optimism is building, other analysts maintain a more cautious outlook. In another post on X, technical analyst Nology expressed caution as RAY approaches a "critical zone of rejection."

"On Raydium, we approach a critical zone of rejection. We can view the price action as having a shallow wave 2 that is re-establishing a bull trend up, or a rejection from $4.20-$5 area without stopping will actualize the bear scenario into a longer correction. If the price rises above $5, we can expect a move to $17-$20."

The trader further explained that a failure to break out could lead to a deep decline. However, if the token manages to break above $5, it could signal a potential move to $17 or even $20, according to technical indicators.

According to Nology, Raydium is undergoing a shallow Wave 2, a technical term derived from Elliott Wave Theory, which might indicate the beginning of a larger upward trend. Additionally, his post features time-based Fibonacci projections that converge around August, implying that the upcoming two months could be pivotal in determining the longer-term direction of RAY.

Raydium Token Price Chart Confirms Technical Breakout

CentralCharts data showed that the Raydium token recently closed at $3.80, which is above its 50-day and 100-day moving averages, currently at $2.34 and $2.85, respectively. This movement is a noteworthy sign of the token's increasing strength.

Furthermore, the analysis revealed that the RAY coin has now moved past the Bollinger average of $2.89 and even pierced the upper Bollinger Band at $3.52. This type of move usually signifies heightened buying pressure and rising volatility, characteristics typically observed during the initial stages of a trend reversal.

Looking ahead, the first significant resistance level is at $4.20, a point that coincides with the neckline of a potential rounded bottom formation. If the price manages to break above this threshold with sufficient volume, it could set the stage for a sustained upward trend.

The next key barrier is at the $5 mark, a level that holds both psychological and technical importance. A breakthrough above this zone might create potential for substantial gains, possibly extending into double digits.

As of Monday morning, Raydium Coin (RAY) price is up 10.98% in the past hour and now trades at $3.79.