RAY Stays Strong Above $1, Analyst Says Raydium Is ‘Practically the Backbone of Solana Shitcoin Season’

January 24, 2024

rRaydium’s native token, RAY, has dropped early 9% in the last 24 hours, trading around $1.05. The plunge comes after RAY hit oversold levels from a capitulatory slide that saw the token lose over 36% of its value in recent months.

According to crypto analyst “the dude“, the drop in RAY is an “underrated call” given Raydium’s pivotal role as the leading automated market maker (AMM) and top decentralized exchange (DEX) on Solana. As Solana tokens and NFT collections come back into vogue, Raydium is poised to capture increased activity as the ecosystem’s “backbone” DEX.

From a technical perspective, the sharp slide in RAY led to extremely oversold conditions, as measured by its 14-day relative strength index (RSI). Per analysis from altFINS, RAY’s current RSI reading is around 25 on a scale of 0 to 100.

Readings below 30 generally signify oversold territory and reflect sellers having dominated in the extreme short-term. This can foreshadow reversals or relief bounces as bears take profits and the overhang from forced selling wanes.

Celebrate Dogecoin and Make Big Gains with Doge2014!

Doge2014 raises 500K in days celebrating Dogecoin. Make potentially big profits and get in on exclusive airdrop!

Show more +

Indeed, RAY has seen a spirited rebound after touching the oversold 30 RSI level earlier this month. This indicates much of the excess pessimism has been cleared out, allowing dip-buyers and bargain hunters to support an upside bounce.

Going forward, RAY needs to reclaim prior support levels around $1.25 to signal sustained bullish momentum. However, the deeply oversold RSI reading near 25 suggests a necessary mean reversion could fuel further short squeezes.

RAY remains tied to broader sentiment around altcoins and DeFi tokens, but its critical platform role gives it rebound potential as speculation returns.

We recommend eToro

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more

Visit eToro Now

Active user community and social features like news feeds, chats for specific coins available for trading.
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.