RAY Surges 11% on Cup-and-Handle Breakout, Targets $4.20 with 17.84% Open Interest Surge

Raydium’s native token RAY surged over 11% in the past 24 hours, breaking out of a cup-and-handle pattern that analysts project could propel the asset toward a $4.20 target [1]. The price, currently at $3.39, has extended gains as aggressive spot buying and rising leveraged exposure align to reinforce the upward trajectory. Technical indicators and market participation metrics suggest the move is gaining structural momentum, though risks of volatility persist as key resistance levels are approached.

The breakout follows a 17.84% spike in Open Interest (OI) to $31.86 million, according to derivatives data [2]. This surge reflects increased speculative activity, with traders layering leveraged positions in anticipation of continued bullish movement. Rising OI typically confirms trend strength, but analysts caution that elevated leverage could amplify swings if sentiment shifts. The current rally coincides with a textbook pattern completion, where a 24% price target—calculated from the cup-and-handle neckline—is now within reach.

Spot market dynamics further validate the move. A 90-day Spot Taker CVD (Cumulative Volume Delta) analysis reveals sustained buying pressure, indicating organic demand rather than derivative-driven speculation [3]. This metric highlights aggressive market buy orders, a common precursor to trend reversals and sustained upswings. The alignment of spot and leverage metrics strengthens the case for continuation, as both reflect coordinated bullish positioning across market segments.

However, liquidation zones between $3.20 and $3.50 remain a critical watchpoint. These clusters, visualized in CoinGlass’s heatmap, represent areas where leveraged short positions are concentrated [4]. RAY’s recent breakout through this range has triggered partial liquidations, but the asset’s trajectory depends on maintaining pressure above $3.50. A sustained advance could clear these zones entirely, unlocking the path to $4.20, while a pullback may reignite short-term turbulence.

The potential for extended upside hinges on maintaining supportive conditions. Analysts emphasize that the current rally is technically valid, but volatility risks remain as leveraged exposure grows. If bullish momentum holds, RAY’s 24% target appears achievable within a short-term horizon. Conversely, sudden sentiment shifts or adverse macroeconomic factors could disrupt the trajectory. Traders are advised to monitor OI trends and liquidation heatmaps for early signals of trend exhaustion or continuation.

Source:

[1] [Raydium rallies 11%: Can RAY hit $4.20 after breakout surge?](https://ambcrypto.com/raydium-rallies-11-can-ray-hit-4-20-after-breakout-surge/)

[2] [Raydium rallies 11%: Can RAY hit $4.20 after breakout surge?](https://ambcrypto.com/raydium-rallies-11-can-ray-hit-4-20-after-breakout-surge/)

[3] [Raydium rallies 11%: Can RAY hit $4.20 after breakout surge?](https://ambcrypto.com/raydium-rallies-11-can-ray-hit-4-20-after-breakout-surge/)

[4] [Raydium rallies 11%: Can RAY hit $4.20 after breakout surge?](https://ambcrypto.com/raydium-rallies-11-can-ray-hit-4-20-after-breakout-surge/)