Raydium [RAY] Was Unable to Transcend the $2.85 Resistance Zone

Raydium [RAY] was unable to break through the $2.85 zone of resistance. It briefly touched levels above this resistance in late April but quickly fell as Bitcoin’s momentum shifted bearish in early May.

While BTC is expected to continue its upward journey, Raydium investors might need to brace themselves for an extended period of consolidation.

Demand has been improving over the past five weeks; however, it hasn't yet tipped the scales in favor of a breakout.

RAY retests the high-volume support zone

As seen on the chart above, Raydium’s rally encountered a setback at the $2.4 level mid-April. It pulled back to $2.15 before surging to levels above the previous swing high at $2.49.

This price action formed a bullish order block, also known as a high-volume support region, between $2.22 and $2.30. At press time, the price was trading just above this zone, setting the stage for a potential reaction.

The A/D indicator has been forming higher lows since early April, indicating increasing 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 be able to hold.

The MFI has moved below neutral 50, suggesting that bearish dominance is increasing. While it hasn't yet confirmed a breakdown, traders should exercise caution.

Liquidation Heatmaps highlight bearish targets

The 1-month Liquidation Heatmap aligns with the findings from the technical analysis.

It also indicated that further downward momentum is likely for RAY. The accumulation of liquidation levels at $1.97-$2.08 marked a bearish price target.

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 towards $2.10 or lower.

Therefore, traders can anticipate a retest of the $2.00–$2.10 demand zone within the next 24–48 hours.

A bullish rebound may follow, but it depends on Bitcoin overcoming the $94.80K local resistance.