The Raydium token ($RAY) has experienced a sharp 28% drop following Pump.fun's new AMM launch on Solana. This event has created significant market pressure, testing key support levels.
The $RAY Drop and AMM Launch
The Raydium token ($RAY) fell by 28% due to the launch of a new automated market maker (AMM) by Pump.fun on the Solana platform. This event threatened Raydium's dominance, sparking a wave of sell-offs. As a result, $RAY crashed to a key support level, coinciding with its July 2024 high.
Technical Analysis and Support
The Relative Strength Index (RSI) at 24.62 signals oversold conditions, suggesting a potential short-term bounce. However, the MACD signal remains bearish, indicating continued downside risk. A 4-hour chart shows the price hovering around $3.03, with a descending trendline reflecting continuous downside pressure.
Critical Support at $1.573
Analysts from Rose Premium Signals suggest waiting for a deeper retracement before entering positions. The level of $1.573 has been pinpointed as critical support. If price action rebounds from this zone, traders might consider long positions with an initial target of $3.285. A stop loss below $1.573 would help minimize risks should bearish momentum persist.
The current pressure on Raydium is linked to the AMM launch on Solana. The critical support at $1.573 is pivotal for the future price direction.
