Raydium's RAY Token Surges 10% in 24 Hours Amid Bullish Momentum

Raydium, a decentralized exchange protocol, has recently garnered significant investor attention due to its robust fundamentals. The protocol boasts a total value locked (TVL) of $1.86 billion and an annual revenue of $655.9 million. Its capital efficiency metrics are particularly noteworthy, with a Revenue/Market Cap ratio of 19.2% and a TVL/Market Cap ratio of 2.84x. Additionally, $67.2 million, or 11.9% of the total supply, is currently staked, indicating strong investor conviction.

As of June 19, the price of RAY, Raydium's native token, stands at $2.27, marking a 20% decline from its high of $2.84 on April 30. However, despite this drawdown, the token has stabilized and rebounded nearly 10% in the past 24 hours, with weekly gains sitting at a modest +1.05%. This stabilization suggests a potential build-up for a new directional move, as indicated by the tighter Bollinger Bands on the chart.

RAY's recent price surge has injected fresh momentum into its price structure. The 4-hour chart reveals a breakout above the midline of the Bollinger Bands in 20 SMA at $2.15, suggesting bullish sentiment is taking hold. Price action pushed through resistance at $2.10 and briefly tested $2.64 before pulling back. At present, the token is trading at $2.27, holding above key short-term support at $2.10. The 10% daily spike was catalysed by a 609% surge in intraday trading volume, which tallied to $401.19 million. A decisive breakout and close above $2.526 could pave the way for a further push toward the target at $2.854. The RSI stands at 58.34, hovering just below overbought territory, implying room for additional upside while still allowing caution for volatility.

The sustainability of the current trend depends on whether RAY can close above $2.526 resistance with sustained volume. Otherwise, a retest of $2.10 support is possible. Key levels to watch include support at $2.10, resistance at $2.526, and a breakout target of $2.854. The recent price surge was likely triggered by a sharp uptick in volume and a breakout above $2.10 support, leading to short-covering and fresh buying, pushing RAY up 9.9% in 24 hours.