Raydium Faces 8% Price Drop Threat as Bitcoin Reset Shatters Bullish Hopes

Raydium, a decentralized exchange (DEX) built on the Solana blockchain, has recently faced significant price pressure, with its value hovering around the $2.2 support level. This critical juncture has raised concerns among investors and analysts about the potential for further losses. The price of Raydium has been under threat due to a combination of factors, including market sentiment and technical indicators.

In mid-May, Raydium broke above the $2.85 level, creating a bullish market structure. However, the recent reset of Bitcoin from $111k over the past ten days has shattered these bullish hopes. At the time of reporting, Raydium bulls were battling to defend the early May lows, hoping to maintain the $2.2 support level. The liquidation heatmap highlighted the threat of an 8% price drop in the short term, with the $2.2-$2.3 region identified as a target for Raydium in the coming days. This region had a sizeable amount of liquidations and lay close to the current market price, suggesting a potential reversal from this level and initiating a rally.

However, the 3-month liquidation heatmap revealed a sizable chunk of liquidity at the psychological $2 level as well. Therefore, if Raydium bulls were unable to stop the bears at the $2.2 mark, another 10% drawdown could be around the corner. The recent price action of Raydium has been characterized by a series of sharp reversals, particularly after attempts to rally above the $2.3-$2.35 supply zone. These reversals have been triggered by sudden inflows of the token, disrupting the bullish momentum and leading to a retest of the $2.3 level as resistance.

On-chain data provides mixed signals for Raydium. Active addresses on the XRP Ledger have shown a steady decline through 2025, with the 30-day moving average reflecting a bearish trend for long-term investors. However, exchange reserve levels on Binance have followed a broader downtrend since November 2024, indicating a positive development as reduced reserves imply cold storage and accumulation of the altcoin. Despite this, sharp spikes in exchange reserves, such as those observed in March and May, have undermined bullish progress, preventing the price from climbing to higher levels.

The Spot Taker CVD (Cumulative Volume Delta) for the past three months has shown a dominance of Taker Buy Volumes, which occurred on the 21st of May. This shift suggests that spot buying activity has assumed dominance, although it does not guarantee immediate price gains. Investors are advised to monitor this metric closely, as a Taker Sell Dominant phase could see Raydium tumble below the $2 mark. On-chain data supports this possibility, with a strong magnetic pocket of liquidation levels near $2.

At the time of reporting, Raydium was trading below the $2.3 mid-range level. Another pocket of liquidity at $2.36 could potentially pull prices higher, but caution is advised. If prices slide to $2 or even $1.95, these zones may offer better risk-reward entries, particularly if the Spot Taker CVD continues its buyer dominance. Investors are encouraged to exercise caution and avoid FOMO (Fear Of Missing Out) as they navigate the volatile market conditions.