The price of Raydium (RAY) has risen by 30% in the last 24 hours, driven by Bitcoin's new all-time high and the increasing dominance of RAY within the Solana ecosystem. The impressive profitability of this protocol has positioned it as a leader, reigniting bullish sentiment towards the token.
However, even in any rally, the possibility of a correction remains before further price appreciation.
Raydium Achieves Record Profitability
Raydium is expected to generate $350 million in revenue by 2024, an impressive feat for a decentralized protocol.
This performance highlights Raydium's dominance in the Solana ecosystem and demonstrates its strong product-market fit.
Read More: 11 Solana Memecoins to Watch in November 2024
Currently, Raydium is generating $2-3 million in daily fees, surpassing many prominent blockchain platforms in terms of daily revenue.
In fact, it is now ahead of the daily fees of Uniswap, Solana, and TRON, trailing only major players like Ethereum, Tether, and Circle.
RAY RSI Indicates Overbought Conditions
Raydium (RAY), which experienced a 30% price surge in just a day, has seen its RSI skyrocket from 45 to over 84. This rapid increase suggests that the buying momentum has strongly pushed the asset into overbought territory.
High RSI levels often imply that the price has risen too quickly, hinting at the possibility of a short-term correction.
The RSI, or Relative Strength Index, is a momentum indicator used to evaluate whether an asset is overbought or oversold. Generally, an RSI below 30 is considered oversold, while an RSI above 70 is considered overbought.
With RAY's RSI currently above 84, it suggests that the token may be due for a correction soon. The current levels indicate an overbought condition, and RAY may need to establish stable support and cool off a bit before attempting new highs.
RAY Price Prediction: 44% Correction Looming?
RAY price is approaching its highest levels since 2022 and may soon break above $5. However, a strong correction could occur before that.
Market conditions are often volatile, and the current optimistic levels may be tested if the buying momentum starts to wane.
The EMA lines for RAY show a bullish setup, with the short-term EMA above the long-term EMA and maintaining a healthy distance between them. This indicates that the current strong uptrend is ongoing. If the uptrend continues and the RSI remains stable without a correction, RAY could continue to rise above $5.
However, if bearish pressure emerges, the price could retrace to the strong support levels of $3.11 or $2.6, representing a potential correction of up to 44% from the current levels.
