Raydium native token RAY has plummeted by around 30% following reports that Pump.fun plans to launch its own Automated Market Maker (AMM). This sharp decline shows growing concerns in the Solana ecosystem where Raydium has been a dominant player.
The announcement of Pump.fun’s new AMM brought attention to the Solana network One of the reasons is its potential impact on Raydium market position.
Raydium has long been a key player in the Solana ecosystem. However, this new competition threatens to erode its market share. Investors, anticipating reduced demand for Raydium’s services, have begun selling their holdings, contributing to the price decline.
The market’s reaction goes beyond simple competition concerns. The news has significantly dampened investor sentiment toward Raydium. Many will now wait to see how this affects RAY’s growth potential and profitability. This loss of confidence has triggered a wave of selling pressure on RAY tokens.
RAY Technical Analysis and Price Movement
Following the news, RAY price broke below a critical support level at $4.20. This has triggered close to 30% decline in a single daily candle. The breakdown suggests a fundamental shift in market sentiment from bullish to bearish.
Currently, RAY is testing the crucial $3 support level, which could determine its next major move. If this support holds, we might see a relief bounce toward the $3.50-$4.20 range. However, a breakdown below $3 could push price lower.
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For any meaningful recovery, RAY needs to reclaim the $4.20 level, which has now turned into resistance. However, the combination of competitive pressures and weakening technical indicators suggests that further downside might be possible.
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