RAY Breaks Cup-and-Handle Pattern, Surges 11% as Open Interest Rises 17.84% to $31.86M

Raydium’s native token RAY surged over 11% in the past 24 hours, breaking out of a cup-and-handle pattern with a projected 24% upside toward $4.20 [1]. The rally has been fueled by aggressive spot market buying and a 17.84% increase in Open Interest to $31.86 million, signaling growing speculative participation [2]. Analysts highlight that the breakout aligns with classic bullish technical structures, with the neckline at $3.39 now acting as a support level.

RAY’s price has broken out of a cup-and-handle pattern, a classic bullish formation, while Open Interest in derivatives markets has surged by 17.84% to $31.86 million [2]. This spike reflects heightened leveraged exposure, a common indicator of early-stage bullish trends. Rising Open Interest alongside price appreciation typically confirms trend strength, suggesting traders are actively betting on higher prices. However, elevated funding activity could introduce volatility if sentiment shifts. For now, the metrics support the ongoing rally, with momentum building around the breakout structure.

Spot market dynamics further reinforce the bullish narrative. Over a 90-day window, the Spot Taker Cumulative Volume Delta (CVD) reveals sustained buying pressure, as traders aggressively enter long positions via market buys [3]. This organic demand distinguishes the move from purely derivative-driven rallies, strengthening the case for continuation. The alignment of spot and derivatives data—rising Open Interest and aggressive spot taker activity—suggests a coherent bullish structure, reducing the likelihood of a false breakout.

Despite the positive signals, liquidation zones between $3.20 and $3.50 pose a critical test for RAY’s momentum [2]. These price levels house dense clusters of leveraged short positions, which could trigger volatility if bullish pressure falters. A sustained move above $3.50 may trigger cascading short liquidations, potentially propelling RAY toward its $4.20 target. Conversely, a rejection back into this range could create intraday turbulence, as overleveraged positions unwind. CoinGlass analysis notes that these clusters now act as key battlegrounds, likely dictating the pace of RAY’s next move.

The current technical setup suggests RAY’s breakout is supported by both spot and derivatives markets. However, traders must remain cautious as leveraged positions consolidate near current levels. A break above $3.50 would likely clear the path for $4.20, while a pullback into liquidation zones could test the trend’s resilience. Open Interest and spot buying metrics remain critical indicators; sustained expansion in these areas would validate the continuation of the rally, whereas a decline could signal waning momentum.

RAY’s projected $4.20 target remains achievable provided bullish drivers persist. The alignment of technical patterns, spot demand, and derivatives participation strengthens the case for extended upside. Yet, the path to this level is not without risk. Elevated volatility from liquidation events and shifting sentiment could disrupt the trajectory. For now, the token’s technical setup and market structure favor a continuation of the rally, though elevated short-term volatility warrants careful monitoring.

Sources:

[1] TradingView

[2] CoinGlass

[3] CryptoQuant

Source:

[1] [title1] https://ambcrypto.com/raydium-rallies-11-can-ray-hit-4-20-after-breakout-surge/

[2] [title2] https://ambcrypto.com/raydium-rallies-11-can-ray-hit-4-20-after-breakout-surge/

[3] [title3] https://ambcrypto.com/raydium-rallies-11-can-ray-hit-4-20-after-breakout-surge/