Raydium has experienced a significant rally, gaining 83% over the past month and 33% in the last week alone. The Solana-based automated market maker’s native token reached a 31-month peak of $3.59 earlier today, a level not seen since April 2022.
Despite a recent dip, with RAY trading at $3.25 at the time of writing, the token remains down 81% from its all-time high of $16.93, recorded on September 13, 2021. Currently, Raydium boasts a market cap of $858 million, making it the 75th largest digital asset.
Is Another Rally on the Horizon?
Data from Santiment reveals that Raydium’s Relative Strength Index (RSI) is nearing 80, indicating that the asset is overbought, which could lead to profit-taking. However, total open interest for Raydium has surged by 65% in the past day, rising from $4.5 million to $7.4 million.
This increase in open interest often correlates with heightened price volatility due to a rise in liquidations. Notably, many traders are currently betting on a price decline for RAY, as reflected by the funding rate shifting from 0.06% on October 26 to -0.06% at the time of reporting. This change suggests that short positions are becoming more dominant.
If short liquidations increase, Raydium could see a resurgence in bullish momentum. However, the combination of rising open interest and a high RSI indicates potential volatility ahead, as the market continues to navigate uncertainty.
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