Raydium, a decentralized exchange and hub for Solana-based meme coins, recently experienced an 18% surge before a slight correction. The token remains in the green zone, with an overall increase of over 42% since last week.
Similar upward trends were observed in Aerodrome Finance and Jupiter, both of which are also decentralized exchanges on the Solana blockchain.
A Closer Look at Raydium’s Recent Price Action
The DEX token was accumulating around the $1.7 level throughout the first half of October 2024. However, on October 13, 2024, Raydium successfully established an upward trend, rising in a near-linear fashion with only occasional volatile spikes.
CoinMarketCap shows that the token has surged by over 129% since October 9, 2024, and is currently trading within the $3.6-$3.37 range.
The project’s market capitalization is around $864 million at the time of writing, and it has experienced a 19.3% increase in trading volume in the last 24 hours.
While the latest candle has been red, it hasn’t been enough to undercut the growth this DEX token has achieved, leading many to believe there is still some upward momentum left for the token.
Why is Raydium Price Rising?
There could be many factors contributing to Raydium’s growth. One of them is its association with the Solana ecosystem, a meta-narrative that many meme coins have leveraged to increase in value.
Another reason could be Kraken Pro’s recent addition of RAY futures trading on its platform, providing users with new ways to interact with the Raydium’s ecosystem.
Another reason is the announcement that the decentralized exchange ecosystem has crossed $300 billion in lifetime volume, through which it has now generated more than $620 million in fees to liquidity providers and $50 million for programmatic $RAY buybacks.
Another announcement by Raydium on the same day covered Burn and Earn updates, which improved swap speeds and enabled frictionless yield.
Raydium’s Total Value Locked (TVL) Exceeds $1.4 Billion
Defillama shows that Raydium’s TVL has increased by more than $1.4 billion since the beginning of this year.
The reports also show that over $120 million worth of RAY tokens have been staked.
Furthermore, CoinGecko shows that Raydium ranks 4th among decentralized exchanges in terms of 24-hour volume, which exceeds $430 million at the time of writing. Over 1.5 million visits per month have been recorded on this decentralized exchange.
Will Raydium Move Up Further?
The recent parabolic price action has led the community to question whether Raydium can maintain its momentum and move further up in price.
A definitive answer is challenging, as the recent increase has been driven by multiple external and internal factors, such as the introduction of improved swap speeds and the token's listing on major cryptocurrency exchanges.
Furthermore, the token’s Relative Strength Index (RSI) indicates it is in the overbought zone, suggesting a drop could occur at any time. That said, if Raydium manages to stay above its critical support of $2.685, it could move higher. However, a return to its all-time high is unlikely, as it would require a surge of over 390%.
If the RSI remains in the overbought zone and support breaks down, Raydium may drop further, potentially finding support around the $1.5 level.
For now, it is wise to watch for any headwinds to find an ideal buying opportunity, as the Solana narrative and the influx of new Sol-based meme coins may keep RAY appealing for short-term gains.