Raydium (RAY) has been gaining considerable attention, having surged over 60% since the start of March after a period of consolidation. Despite the price nearing resistance levels, there is still optimism about its potential to keep climbing. Recently, a TD Sequential sell signal appeared on RAY’s daily chart, which traditionally indicates a potential end to a bullish trend. This signal coincides with RAY approaching a significant resistance zone near $2.30, a level where the price has faced rejections in the past. The next few trading sessions will be crucial in determining whether the rally will extend or face a corrective pullback.

Even though there are signals pointing to possible exhaustion, the broader sentiment remains cautiously positive. The OI-Weighted Funding Rate, sitting at 0.0054% at the time of writing, suggests that traders are leaning toward a mild bullish sentiment but without significant overconfidence. This level of caution, with minimal leverage being used, suggests that market participants are adopting a more disciplined approach. This controlled risk-taking can contribute to the sustainability of the rally, as excessive speculative trading is typically a red flag for potential market instability.

In addition to this, a closer examination of the liquidation map reveals key support and resistance zones that traders are watching closely. A large concentration of long liquidations sits between $2.04 and $2.16, which means that a price dip into this range could lead to a wave of forced sell-offs. On the other hand, short liquidations above $2.32 are relatively sparse, which implies that if RAY manages to push past this resistance level, the price could climb more smoothly with less opposition. Maintaining support above the $2.16 level will be critical to keep the bullish momentum intact.

Market participation also shows an interesting trend. While Open Interest currently stands at $16.48 million, volume has surged to $37.8 million, indicating increased engagement. This uptick in volume, paired with declining Open Interest, reveals that more traders are entering the market but without a sharp rise in speculative leverage. This suggests that traders are relying more on spot purchases and lower-leverage strategies, adding a level of stability to the current market conditions.

Looking ahead, if RAY manages to break through the $2.51 resistance level, it would confirm a continuation of the upward trend, with the next major resistance area lying at $4.50. This price point has historically acted as a ceiling, and breaking through it would signal a larger shift toward a bull market for Raydium.

Despite the appearance of the TD Sequential sell signal, other key metrics continue to support the bullish narrative. The relatively stable funding rates, combined with a restrained use of leverage and an increase in market participation, suggest that the rally may have more room to grow. The critical point of focus will be whether RAY can hold the $2.16 support level and break above $2.51. If it does, there is potential for the price to continue moving higher, with the $4.50 resistance being the next major hurdle to cross.

In conclusion, Raydium’s price action shows that while there are short-term concerns, the broader outlook remains cautiously optimistic. With disciplined positioning and an increase in market activity, RAY has the potential to break key resistance levels, continuing its upward trajectory in the coming sessions. Traders will be watching closely to see if the asset can hold support and achieve the necessary breakout to further extend its rally.