Raydium’s (RAY) Price Skyrockets 50% Despite Market Pullback: Where Next?

RAY, the native token of Solana-based automated market maker (AMM) and liquidity provider Raydium, has emerged as the market's top gainer over the

output: Despite the broader market downturn, the native token of Solana-based AMM and liquidity provider Raydium has emerged as the market's top gainer in the past 24 hours.

With surging trading activity, RAY trades at its highest price since 2021 and is poised to extend its gains further.

The RAY/USD one-day chart shows a surging demand for the altcoin, which is depicted by the setup of its Ichimoku Cloud. The Leading Span A and B of this indicator form dynamic support below the token’s price at $6.04 and $5.87, respectively.

The Ichimoku Cloud tracks the momentum of an asset's market trends and identifies potential support/resistance levels. When an asset trades above this cloud, it is in an uptrend. In this scenario, the cloud acts as a dynamic support zone, increasing the chances of continued upward movement as long as the price remains above it.

Moreover, bolstering this bullish outlook is RAY's positive Chaikin Money Flow (CMF) at press time, which sits above the zero line at 0.23.

This momentum indicator tracks how money flows into and out of an asset. As with RAY, when its value is positive, buying pressure dominates the spot markets. It suggests accumulation among market participants and hints at a continued uptrend in the asset's price.

According to readings from RAY's Fibonacci Retracement tool, if the current uptrend continues, it could attempt to breach resistance at $8.96. If successful, this could propel its price to $11.05 and toward its all-time high of $17.80.

However, a spike in selloffs will invalidate this bullish thesis. In that scenario, the RAY token price could shed its recent gains and plummet below the support zones of its Ichimoku Cloud to trade at $4.30.