Raydium (RAY) Bounces Back Over 10% Following a Sharp Correction

Raydium (RAY) rebounded more than 10% after Monday's crash and its market cap nears $2 billion. Technical indicators point to a potential bullish trend. In this article we review revenue numbers trading volume RSI data and price targets for RAY. We also add details about the protocol and its role in the blockchain space.

Source: KuCoin

Raydium’s rise in popularity and growth since 2024 was driven by its integration with Pump.fun, a Solana-based memecoin launchpad which launched in January 2024. The memecoin frenzy on Solana brought a wave of new users to the platform, eager to trade trending tokens. By mid-2024, Raydium saw a 200% increase in trading volume compared to the previous year. It became the go-to platform for memecoin enthusiasts, offering deep liquidity and low fees. The partnership with Pump.fun not only attracted traders but also increased Raydium's visibility within the broader crypto community.

Raydium’s total value locked (TVL) surged from under $130 million at the beginning of this year to over $2.2 billion as of writing, making it the largest DEX in the Solana ecosystem. 

1. RAY rebounded over 10% after Monday's crash

2. RAY generated $42 million in weekly revenue and handled $21 billion in trading volume

3. RSI jumped from 20.8 to 53.87 in 2 days showing increased buying pressure

Raydium is built on the Solana blockchain and uses an automated market maker model to execute trades instantly. It links liquidity pools to Serum's central order book in order to offer deep liquidity. In addition the platform supports token swaps liquidity provision yield farming and staking. It processes up to 65,000 transactions per second and charges fees as low as $0.00001 per transaction. Smart contracts secure trades and yield distributions which makes Raydium an efficient and secure DEX for crypto traders. The RAY token serves governance functions and earns staking rewards. Raydium is known for its low transaction fees and high throughput. It remains one of the key projects in the Solana ecosystem and continues to expand its range of services.

Read more: How to Use the Raydium (RAY) Decentralized Exchange on Solana: A Beginner’s Guide

Raydium now stands near a $2 billion market cap. Meanwhile EMA lines hint at a golden cross forming soon. A confirmed golden cross may push RAY to test $7.92 and a breakout above that level could drive the price to $8.7. This marks a potential 33% upside. However if RAY loses momentum it could drop to support at $5.85 and then break down to $5.36 or lower.

Raydium is one of the top revenue-generating blockchain protocols. It earned $42 million in the last 7 days and outpaces major players such as Circle Uniswap and Ethereum. Over the past year RAY generated nearly $1 billion in revenue which compares with Solana's $965 million. In the last 24 hours RAY handled $3.4 billion in trading volume and $21 billion over the past week.

Top Protocols in Fees Generated – Last Seven Days. Source: DeFiLlama.

Read More: Top Crypto Projects in the Solana Ecosystem to Watch in 2024

Raydium's RSI now sits at 53.87. Previously it was 20.8 only 2 days ago. The Relative Strength Index measures momentum. Values below 30 indicate oversold conditions while values above 70 show overbought levels. At 53.87 the RSI is neutral.

RAY RSI. Source: TradingView

This jump shows that buying pressure has increased and RAY is emerging from oversold territory.

Read more: Raydium Targets $8 Milestone with 15% Surge and Strong Bullish Indicators

Source: TradingView

RAY corrected by 34% between January 30 and February 3. It then rebounded nearly 30%. In this context the golden cross hinted by EMA lines could drive the price higher. A breakout above $7.92 might push RAY to $8.7. Conversely if the trend reverses RAY could test support at $5.85. A breakdown might push the price to $5.36 and a deeper sell-off could see levels as low as $4.71 or even $4.14. These would be the lowest levels since January 13.

Investors should consider buying RAY on KuCoin. The exchange offers a fast trading experience and secure transactions. Moreover the platform features competitive fees and advanced trading tools. RAY is available on KuCoin along with many digital assets which makes it a strong choice for investors seeking exposure to RAY.

Raydium is a key player in the DeFi ecosystem on Solana, offering fast, low-cost trading, deep liquidity, and advanced tools for both beginners and experienced traders. Its growth in 2024, fueled by the memecoin frenzy and integration with Pump.fun, highlights its importance as a hub for decentralized trading. In conclusion, Raydium shows a strong technical recovery and impressive revenue figures. Its rebound and rising RSI hint at a potential bullish trend ahead. Furthermore high trading volumes and robust revenue back its role as a leading blockchain protocol. With its integration into the Solana ecosystem, Raydium offers unique advantages. Investors should watch key support levels to decide if the momentum holds or reverses. Overall the technical data presents a clear risk and reward scenario for RAY. However, always remember that DeFi platforms come with risks. Token prices can be volatile, and smart contract vulnerabilities may pose security concerns. Trade responsibly, do thorough research, and only invest what you can afford to lose.