Raydium Price News: Ecosystem News Propel RAY – Is It Enough to Break Through $2.5?

Raydium (RAY) has gone up by nearly 11% in the past 24 hours as trading volumes have exploded by 645% during this period.

RAY currently sits at the 100th place among all cryptos in terms of market value as the token has experienced a significant 54% since the year started.

Growing competition in the Solana ecosystem from the recently launched Pump Swap and other decentralized exchanges like Orca have contributed to depressing the price of this utility token.

Raydium has responded with the creation of LaunchLab, a token-minting tool that competes directly with Pump.fun – the most popular protocol to create meme coins in the Solana ecosystem.

Raydium Official X Account – Source: X.com

Today, Raydium launched an incentive program for LaunchLab that consists of weekly rewards of 100,000 RAY (approximately $200,000) for those who trade and create new tokens by using the DEX’s new tool.

The announcement seems to have excited market participants, possibly as Solana’s meme coin ecosystem is quite big and some players may have been drawn to participate in this contest by launching new tokens that can capture the public’s attention to earn a portion of this rewards pool.

In addition, Raydium news can now be tracked through a new tool called Universal Inbox, a news feed that provides users with the latest developments within the Solana blockchain. All news associated with this incentive program will hit Universal Inbox in real time.

RAY Bounces Off Key Support $2

On the technical front, there could be another reason why RAY has skyrocketed today apart from this ecosystem news.

Looking at the daily chart, yesterday’s session bounced off a key support at $2 that has acted as a cushion during the latest downtrends.

RAY/USD Daily Chart (Kraken) – Source: TradingView

This is also a psychological threshold for both investors and traders and could be a place where a significant volume of order blocks may lie.

Does this support bounce justify such a huge move? Not necessarily, but it helps exacerbate whatever reaction the market has.

For example, if the price bounces, sellers who may have been betting for a support break will be flushed out by a move of the magnitude seen today. In contrast, if RAY broke below $2, it would have flushed out a significant number of long positions with their corresponding stop losses below these levels.

Today’s move could be partially interpreted as a short squeeze. The daily candle for today’s session shows that sellers have already evaporated most of the upside that RAY experienced earlier.

A Retest of $2.5 Seems Highly Likely

The price hit a ceiling at $2.5, where a significant volume of sell orders probably existed as well. Now the price has moved back within its consolidation rectangle and will likely continue its upward trajectory in the next few days.

RAY/USD Hourly Chart (Kraken) – Source: TradingView

Momentum indicators favor a bullish outlook to some extent as the Relative Strength Index (RSI) has just moved above its 14-day moving average.

As long as the $2 holds, RAY could retest $2.5 within the next few days after this surprising jump. It seems that there was significant liquidity at those levels as today’s jump has uncovered that fact.

This is now the key resistance to watch as RAY has rejected a move above that area multiple times.