Raydium [RAY] has been in a steady uptrend over the past eight days

Raydium [RAY] has been in a steady uptrend over the past eight days. After retesting the $2.2 support zone, Solana's [SOL] decentralized exchange token has rallied 64.9%

Solana's decentralized exchange token, Raydium [RAY], has been on a remarkable run, surging 64.9% at press time. This rally follows a retest of the $2.2 support zone.

Two weeks ago, an analysis highlighted the strong case for RAY bulls.

Since then, the token has demonstrated resilience, encountering a 27% price dip from $3 to $2.2 in early May.

Recently, altcoins have been showing strength, and RAY holders might witness further gains in the coming days and weeks.

Raydium to test $4 next, but can it break through?

On the 1-day chart, Raydium displayed a bullish market structure with the breach of a significant lower high set during early March. This breakout flipped the swing structure of Raydium on the 1-day chart bullishly.

The previous lower high was at $2.85. On Saturday the 10th of May, the price surged past this local resistance, and two days later, retested is as support before bounding higher. However, its ascent came with a challenge.

The Awesome Oscillator had not formed a new higher high, even though the price broke $2.85 first, and was not nearing the $4 resistance.

This bearish divergence could see RAY unable to challenge $4, or unable to break this resistance on the first try. The CMF was above +0.05, a sign of strong buying pressure.

On the 4-hour chart, the capital inflow had not been as swift or sure. The CMF was at -0.02, and had dipped to -0.26 just 36 hours before the time of writing.

Hence, even though the Awesome Oscillator showed bullish momentum, a lack of demand could stall further gains.

Data from Coinalyze showed speculative interest. The Open Interest surged from $7.8 million to $11.26 million within a day as Raydium climbed past the 3.2 local resistance.

The Funding Rate was positive, and alongside the rising Open Interest, showed bullish market expectations in the short-term.

However, the 1-day bearish divergence could stall the rally or induce a pullback from the $4 resistance.