Raydium Surges 15%: Can $8 Barrier Be Broken?

Raydium, a decentralized exchange (DEX) on the Solana blockchain, has been making waves in the crypto market with its impressive 15% surge in the last 24 hours. At the time of writing, RAY's price has reached $7.50, pushing towards a potential breakout. This bullish momentum follows a cup-and-handle pattern, a technical analysis indicator that suggests a continuation of the current trend.

However, the $8 resistance level remains a significant barrier that must be broken for RAY to continue its upward trajectory. Traders are closely monitoring the situation to determine whether RAY can maintain its uptrend or face a rejection at this crucial level. If buyers can maintain control, a breakout towards $9.00 could occur, driving further bullish momentum. Conversely, if RAY fails to hold above $8.01, a pullback towards $7.20, where short-term support lies, may be triggered.

On-chain data reveals that daily active addresses have risen to 12, indicating increased market engagement. Steady growth in active addresses is generally a bullish sign, reflecting higher network usage. If this number continues to rise, it could suggest stronger demand for RAY, supporting further price appreciation. However, any sudden drop in active addresses might indicate weakening interest in the token.

Technical indicators also confirm the bullish momentum. The Relative Strength Index (RSI) stands at 58.64, indicating a strong but not overbought market. Additionally, the 9-day Moving Average (MA) has crossed above the 21-day MA, pointing to a bullish crossover. These indicators reinforce the cup-and-handle formation, supporting the case for an upward breakout. However, if the RSI moves above 70, the market could become overbought, leading to a short-term correction.

While price action remains strong, the NVT (Network Value to Transactions) ratio has dropped to 1.15, signaling higher transaction activity relative to the market cap. Although a lower NVT ratio generally indicates healthy network usage, sharp declines can also suggest potential volatility. If selling pressure rises, RAY might briefly retrace to $7.20 before attempting another breakout. However, stable transaction volumes could help sustain the rally.

In conclusion, RAY has strong bullish momentum, with rising active