Raydium (RAY) has recently signaled a significant bullish shift, breaking out of a prolonged consolidation phase with a substantial price surge. This upward momentum, targeting the $4 mark, is underpinned by a combination of strong technical patterns and supportive derivatives data, indicating a potential trend reversal and renewed speculative interest in the altcoin.
Technical Breakout and Bullish Momentum
RAY successfully broke out of a symmetrical triangle structure, leading to a notable 9.69% daily increase and pushing its price towards the projected $4 target. This technical breakout, confirmed by stronger trading volume, often signals a robust bullish continuation. Further reinforcing this optimism, the Stochastic RSI is also showing strength at 85.81, underscoring Raydium's near-term bullish prospects. However, to sustain this rally, RAY must overcome immediate resistance levels, particularly around the $3.80 zone.
Derivatives Market Insights and Liquidation Trends
The bullish narrative is further supported by significant activity in the derivatives market. Open Interest surged by over 12%, reaching nearly $40 million, which reflects a renewed speculative appetite and stronger conviction among traders. This increase, alongside the price breakout, amplifies volatility and typically favors the prevailing trend. Additionally, liquidation data highlights that short positions have absorbed substantial losses compared to long positions, indicating that bearish bets are being squeezed. While the scale of these short liquidations is modest, persistent pressure against shorts can further fuel upside momentum by adding to buying pressure.
Navigating Key Hurdles Towards $4
While the current outlook for Raydium appears favorable, the path to $4 involves navigating crucial resistance points. Significant liquidity clusters around $3.6 and $3.8 are identified as key battleground zones, acting as magnets for price action. With $3.6 successfully retested as support, the next critical test lies at $3.8. A decisive breakout above this level, driven by sustained buyer commitment, would likely accelerate RAY's rally and enable it to establish a firm foothold above the $4 target in the near term. The confluence of strong technicals and positive derivatives data suggests that buyers currently have the upper hand, making a clean breakout above $4 a likely outcome.
