Raydium (RAY) has seen an impressive 15% surge in the last 24 hours, pushing its price to $7.50. This bullish movement follows the formation of a cup-and-handle pattern, which often signals a potential breakout. However, the token faces a significant hurdle at the $8 resistance level, and traders are closely monitoring whether the price can break through and maintain upward momentum.

Bullish Pattern Emerges as RAY Tests Key Resistance

The cup-and-handle pattern that Raydium has been forming suggests a continuation of its upward trajectory. After a recent dip, the price has steadily climbed, approaching the crucial $8.01 resistance. If buyers manage to push through this level, the price could see further gains, potentially reaching the $9.00 mark.

However, a failure to maintain momentum above $8.01 could trigger a pullback. The immediate support lies at $7.20, and if RAY cannot hold this level, it may retrace further before another attempt to break past resistance.

On-Chain Data: Rising Active Addresses Show Increasing Demand

On-chain data shows that Raydium’s network engagement is growing. The number of daily active addresses has risen to 12, indicating heightened interest in the asset. Although fluctuations in active addresses are common, a steady increase is typically seen as a bullish sign, as it reflects growing network usage.

If the number of active addresses continues to rise, it could signal increased demand for Raydium, supporting further price appreciation. However, any sudden decline in active addresses might suggest that interest is waning, potentially affecting the price action in the short term.

Momentum Indicators: Bullish Sentiment Remains Strong

Momentum indicators continue to support the bullish outlook for Raydium. The Relative Strength Index (RSI) currently sits at 58.64, suggesting strong market momentum without signaling overbought conditions just yet. This indicates that there is still room for further upside without a significant risk of a correction.

In addition, the 9-day Moving Average (MA) at $6.87 has crossed above the 21-day MA at $6.82, which is considered a bullish crossover. This further reinforces the likelihood of continued upward movement. However, if the RSI moves above 70, it could signal that the market is becoming overbought, which might result in a short-term pullback.

NVT Ratio: Caution Amidst Strong Price Action

Despite the strong price action, the Network Value to Transactions (NVT) ratio has dropped to 1.15. This suggests that while transaction activity is increasing relative to the market cap, sharp declines in the NVT ratio can sometimes signal volatility. While a lower NVT ratio is generally positive, as it indicates healthy network usage, it can also be a precursor to sudden price fluctuations.

If selling pressure increases or transaction volumes slow down, Raydium may face a brief retracement to the $7.20 support level. However, if stable transaction volumes persist, the rally could continue with a successful breakout above the $8 resistance.

Conclusion: Will Raydium Break Past $8?

Raydium’s price action remains strong, bolstered by rising active addresses, a positive RSI, and a bullish moving average crossover. However, the $8.01 resistance level remains a critical barrier that must be broken for the rally to continue. If buyers succeed in pushing through, the next target could be $9.00. But, if resistance holds, a pullback to $7.20 is likely before another breakout attempt.

For traders watching the asset, it’s crucial to monitor how Raydium behaves at these key levels to determine if the bullish momentum can be sustained. With a combination of positive indicators and resistance at $8, Raydium’s future price action will depend largely on whether buyers can maintain control in the coming days.