Raydium Token Update

Raydium’s token, RAY, faced massive selling pressure as its Open Interest declined, and the Funding Rate went negative for the first time in months.
Market sentiment remained bearish as traders panic-sell, increasing Raydium’s network activity and trading volume.

Raydium [RAY] has faced market uncertainty as rumors of Pump.fun launching its Automated Market Maker (AMM) liquidity pool induced massive investor sell-offs.

With the launch of the first test token, $CRACK, on Pump.fun’s AMM pool, RAY investors are worried about its future in the Solana ecosystem.

According to CoinMarketCap, RAY has seen its price drop below the $4.20 key support level, facing a 21.04% price dip. The trading volume rose by 65.74% in the last 24 hours, at the time of writing.

Raydium’s Price Action on the Chart

RAY has broken down from its right-angled ascending broadening pattern on the daily chart and was trading at $2.41, at press time.

After Pump.fun’s AMM news, the token fell below the $4.20 key support level, losing more than 27% of its market price.

Due to the current market FUD surrounding Raydium, the next major support sits at $2.20, according to analyst Ali Martinez on X (formerly Twitter).

The $4.00-$4.20 zone will now act as RAY’s new resistance.

Raydium’s On-Chain Metrics Amid Market News

RAY’s trading volume has risen 65.74% despite a price dip in the last 24 hours, signaling increased market activity.

According to TradingView data, the Relative Strength Index (RSI) stood at 26, at press time, and MACD(12,26) sat at -0.6569, suggesting overselling and strong bearish momentum.

Raydium’s Open Interest has dropped by 33.85%, and its Funding Rate has turned negative for the first time in months.

According to DefiLlama data, Raydium’s Total Value Locked (TVL) has declined steadily in the last 72 hours and stood at $1.213B, as of this writing.

A sudden surge in the network’s active addresses signals massive panic selling by investors based on market news.

Market Sentiment: Is the FUD Real?

At press time, Raydium’s Long-Short Ratio was 0.93, indicating a slightly negative neutral zone based on Coinglass data. This suggests that the market has more sellers than buyers.

With short-term, mid-term, and long-term moving averages signaling a strong “Sell,” the FUD among traders could be real.

If buyers can defend the $2.70 level with strong volume, ignoring the FUD, Raydium could see a trend reversal toward the $3.50-$4.00 key zone.

However, if sellers’ dominance holds, RAY could dip further to $2.20.