Raydium (RAY), the Solana-based decentralized exchange (DEX) token, has seen a sharp pullback over the past nine days, losing more than a quarter of its value. After peaking near $2.85 in late April, the token failed to sustain its bullish momentum and has since retraced nearly 27%, now hovering just above a key high-volume support zone between $2 and $2.1.

While the current price range suggests a potential bullish reaction in the near term, short-term volatility remains a risk, especially with Bitcoin’s ongoing struggles to reclaim the $95,000 mark.

Price Reversal at Crucial Support in Focus

Raydium briefly pierced above the $2.85 resistance late last month, but the rally was short-lived. As Bitcoin turned bearish in early May, so too did RAY, which quickly lost ground and dropped toward the $2.1 range. This zone aligns with a previously identified high-volume demand area between $2.22 and $2.30, which had been formed after RAY’s mid-April correction and bounce.

This support zone is technically significant. If bulls can maintain price action above $2.10, it may provide a strong foundation for a renewed move upward. However, any failure to hold this area could result in a deeper correction toward $1.97 or lower.

Mixed Signals from Technical Indicators

The Accumulation/Distribution (A/D) indicator had been showing strength throughout April, forming higher lows and suggesting increased investor accumulation. However, with the recent price drop, the A/D line has begun to decline, indicating that some of this buying pressure may now be fading.

Similarly, the Money Flow Index (MFI), a momentum oscillator that measures the inflow and outflow of capital, has dropped below the neutral 50 level. This indicates rising bearish sentiment. Although a full breakdown has not yet been confirmed, traders are being cautioned to brace for additional downside risk.

The moving averages have also begun to converge, a classic signal of potential consolidation or a trend reversal. In this scenario, the $2.15 level becomes a crucial psychological support that could define RAY’s near-term direction.

Liquidation Data Suggests Lower Targets

Supporting the bearish technical setup, liquidation heatmaps from Coinglass show a cluster of liquidation levels between $1.97 and $2.08. These levels typically act as magnets during periods of selling pressure, as liquidations can accelerate price moves.

The 24-hour liquidation heatmap identifies $2.20 as a near-term level where cascading liquidations could begin, potentially pushing the price further into the $2.00–$2.10 demand zone. A loss of this level could result in a test of the lower bound at $1.97, where a more aggressive bounce may be triggered.

Bitcoin’s Role in RAY’s Next Move

Much of Raydium’s price action continues to mirror that of Bitcoin. As BTC struggles to regain its footing near $94,800, RAY’s performance may also remain under pressure. A decisive breakout for Bitcoin could restore confidence in altcoins like Raydium, potentially triggering a strong bullish reaction from the current support range.

Conversely, if Bitcoin faces further rejection, RAY could experience more downside pressure and may need to retest deeper support levels before any meaningful recovery can take shape.

Outlook: Volatility First, Breakout Later

Over the next 24 to 48 hours, traders should closely monitor the $2.00 to $2.10 demand zone. A clean bounce from this range, backed by renewed buying volume, could signal the end of the correction and open the door for a retest of higher resistance levels at $2.49 and eventually $2.85.

However, caution is warranted. A breakdown below $2 could trigger further liquidations and invalidate the current support, leading to increased market uncertainty.

For now, the next decisive move for Raydium hinges on Bitcoin’s ability to reclaim key resistance levels and stabilize the broader crypto market.