Key Takeaways
Raydium broke out of a symmetrical triangle, surged by 9.69% as the $4-target came into play. Meanwhile, the Open Interest rose by 12%, with short liquidations hinting at strong bullish momentum.
Raydium [RAY], at the time of writing, had broken out of a tightening triangle structure. This signaled a potential trend reversal after weeks of sideways movement. As expected, the breakout pushed the token higher, with RAY trading at $3.63 after an uptick of 9.69% on the daily charts.
Such a breakout pattern often sets the stage for strong bullish continuation, with projections now pointing towards the $4-mark.
However, to determine whether this momentum can last, it is essential to examine derivatives positioning, liquidation trends, and liquidity zones highlighted in the latest data.
Is RAY’s breakout strong enough to sustain a rally to $4?
The triangle breakout revealed clear bullish intent as RAY surged on the back of stronger volume confirmation. Patterns like this tend to invite follow-through buying, particularly when paired with an elevated daily gains.
The Stochastic RSI at 85.81 also appeared to be strong, reinforcing the altcoin’s near-term bullishness. However, sustaining this momentum will require overcoming multiple resistance layers, with the most immediate challenge set at the $3.80-zone.
Therefore, while the breakout strengthened Raydium’s case for further gains, the path to $4 will require persistent buyer commitment to maintain pressure against overhead barriers.
Source: TradingView
Are traders fueling momentum with rising Open Interest?
The Open Interest surged by 12.08% to hit $39.97 million – A sign of renewed speculative appetite from traders. Such a hike in positioning typically highlights stronger conviction in the ongoing trend and expands liquidity depth within Futures markets.
When the Open Interest climbs alongside a breakout, it often amplifies volatility while favoring the prevailing move. What this means is that the latest derivatives data hinted that traders may be leaning towards supporting Raydium’s bullish trajectory.
Still, rapid changes in sentiment could introduce volatility. This would make Open Interest a critical metric to watch in the days ahead.
What do liquidation trends reveal about short-term sentiment?
Liquidation data highlighted shorts absorbing heavier losses, with $169 liquidated against just $1.4k in longs during recent trading. This imbalance highlighted how bearish bets have been squeezed as Raydium extended its gains.
Furthermore, persistent liquidation pressure against shorts often fuels additional upside as traders forced out of positions add to buying pressure.
However, the scale of these liquidations was relatively modest – A sign that the market is yet to experience an aggressive short squeeze.
Where do liquidity clusters create key battleground zones?
Finally, Bybit’s liquidation heatmap highlighted significant liquidity clusters around $3.6 and $3.8, creating zones where price reactions will be most likely.
Clusters of this kind often act as magnets, drawing the price action towards them before a decisive breakout or rejection.
With $3.6 already retested successfully as support, the next decisive test lies at $3.8. A clean breakout above this level would likely accelerate Raydium’s rally, pushing towards the projected $4-target.
However, repeated rejections near these zones could trigger short-term retracements before the bulls attempt another push.
Will RAY break $4 decisively?
Raydium’s breakout has placed the token back on the radar, with $4 firmly within reach. Rising Open Interest and short liquidations are evidence that traders may be backing the bullish setup.
While liquidity around $3.8 may act as a hurdle, the technicals and derivatives data seemed to favor buyers at press time. Therefore, Raydium is likely to extend gains and secure a clean breakout, establishing a decisive foothold above $4 in the near term.
