Key Takeaways
RAY breaks out of a bullish pattern as Open Interest jumps 17.84% to $31.86 million. Spot taker activity and liquidation zones signal potential for extended volatility and upside.
Raydium [RAY] has completed a textbook breakout from a cup-and-handle pattern, a move that often precedes strong bullish continuation.
The breakout projects a 24% upside from the neckline, with a target near the $4.20 zone. At the time of writing, RAY trades at $3.39 after jumping over 11% in the last 24 hours.
This explosive move confirms bullish intent and signals a shift in market structure.
The strong upward momentum, coupled with key resistance flips, positions RAY favorably for short-term continuation — provided supportive metrics remain aligned.
Source: TradingView
Are derivatives traders fueling RAY’s current momentum?
Open Interest surged by 17.84% to $31.86 million, showing growing participation and speculative confidence.
This spike reflects a sharp increase in leveraged exposure, typically observed during the early stages of a bullish trend.
Rising Open Interest alongside price appreciation often confirms trend strength, suggesting traders are actively betting on higher prices.
However, the elevated funding activity could introduce volatility if sentiment flips. For now, this metric supports the ongoing rally, with momentum building around the breakout structure.
Source: CoinGlass
Does the spot market confirm strong demand for RAY?
The Spot Taker CVD over a 90-day window highlights dominant taker buy activity, confirming sustained buying pressure in the spot market.
This metric reveals that traders have been aggressively entering long positions via market buys, which typically accompanies bullish trend reversals.
With this aggressive spot behavior backing the breakout, the upward move appears well-supported by organic demand rather than just derivatives speculation.
The alignment of spot and leverage data strengthens the outlook for extended upside in the near term.
Source: CryptoQuant
Will liquidation zones between $3.20 and $3.50 create volatility traps?
According to the liquidation heatmap, dense clusters lie between $3.20 and $3.50 — a zone that RAY has just pierced.
These levels mark areas where overleveraged positions could trigger liquidations, intensifying price swings.
If bullish pressure persists, cascading short liquidations above $3.50 could drive RAY further toward its measured target.
However, a rejection and reversal into this zone may create short-term turbulence. These clusters now act as key intraday battlegrounds and may dictate the pace of RAY’s next move.
Source: CoinGlass
Can RAY sustain its breakout and reach $4.20?
RAY’s breakout appears technically valid, supported by strong spot market demand and rising Open Interest.
Liquidation zones between $3.20 and $3.50 have already seen activity, clearing the path for potential continuation.
If bullish pressure holds and market conditions remain favorable, the $4.20 target remains achievable.
However, traders should watch for sudden volatility as leveraged positions continue to build around the current price range.
