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.
Milei Moneda is a new meme coin inspired by the political and economic views of Javier Milei, an Argentine president known for his libertarian and pro-Bitcoin stance. You have an opportunity with the ongoing low presale price to get in early!
Sponsored
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.
You may also be interested in:
- XRP Ripe for a Bounce Back After This Indicator Issues a “Buy” Signal for Ripple
- Bitcoin Correction Is Not Over Yet, Analyst Says BTC Could Hit $120,000 If This Happens
- Manta Network (MANTA), ONDO (ONDO) & Option2Trade (O2T) Gear Up for 2024 Bullrun
Check $RECQ Meme Coin
ICO stage, offering tokens at a discounted price
Facilitates a smooth and efficient economy within the arcade, supporting both arcade and in-game transactions.
Grants access to a diverse range of gaming experiences in the Rebel Satoshi Arcade,
Contributes to a decentralized, community-driven RebelSatoshi platform that integrates gaming with elements of revolution, freedom, and unity, appealing to users who value such principles.