Raydium Drops 27% in Nine Days as Bitcoin Momentum Turns Bearish

Raydium, a decentralized exchange protocol, has experienced a significant decline of 27% over the past nine days, retesting a local demand zone. This drop comes after the cryptocurrency failed to surpass the $2.85 resistance zone in late April. The price briefly rose above this resistance but quickly fell as Bitcoin's momentum turned bearish in early May.

Investors in Raydium may need to brace for an extended period of consolidation, as demand has improved over the past five weeks but has not yet tipped the scales toward a breakout. The price action in mid-April carved out a bullish order block, or high-volume support region, between $2.22 and $2.30. At the time of writing, the price hovered just above this zone, preparing for a possible reaction.

The Accumulation/Distribution (A/D) indicator has formed higher lows since early April, indicating increased demand for Raydium’s utility token. However, recent selling pressure has caused the A/D line to decline, suggesting that the $2.15 support level may not hold if the trend continues. The Money Flow Index (MFI) has also fallen below the neutral 50 mark, indicating growing bearish dominance. While it hasn’t confirmed a breakdown, traders are advised to remain cautious.

Liquidation Heatmaps further support the bearish outlook, with the 1-month Heatmap showing a build-up of liquidation levels at $1.97-$2.08, marking a bearish price target. The 24-hour Heatmap identifies $2.20 as a short-term price target, with a cascade of long liquidations at this level potentially pushing Raydium’s price toward $2.10 or lower. Traders should anticipate a retest of the $2.00–$2.10 demand zone within the next 24–48 hours.

A bullish rebound may follow, but it is contingent on Bitcoin surpassing the $94.80K local resistance. The next move for Raydium will be determined by its ability to hold above the $2.00–$2.10 demand zone and the overall market sentiment surrounding Bitcoin.