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Raydium (RAY) is currently facing a critical test of support as bearish momentum continues to drag the token downward. After a promising breakout in mid-May, which briefly pushed RAY above the $2.85 level, market conditions have shifted dramatically. The recent correction in Bitcoin, falling from highs near $111,000, has rippled across the altcoin market, with Raydium losing much of its bullish structure. Now, the focus is on whether the $2.2 support zone can halt further losses or if the bears will force a deeper breakdown.
Initially, the surge in buying volume in May suggested strong momentum that could have propelled RAY toward the $4 mark. However, that rally lost steam as Bitcoin’s decline triggered widespread de-risking. Currently, RAY is struggling to defend the early May lows, with bulls attempting to stabilize price action around the $2.4 level. Despite their efforts, signs of weakness have begun to dominate the charts.
Raydium’s 1-day market structure has turned decisively bearish. Price has been trapped within a wide range between $2.4 and $3.4 since April, and the breakout above $2.85 now appears to have been a false move. The midpoint of this range sits at $2.9, but Raydium has consistently failed to reclaim that level. The bearish trend is supported by technical indicators, which continue to highlight mounting selling pressure.
The Chaikin Money Flow (CMF) has been well below -0.05 for the past two weeks, reflecting heavy capital outflows from the Raydium market. This drop indicates that sellers are firmly in control, and there is little evidence of new money entering the market to counterbalance the decline. Similarly, the Accumulation/Distribution (A/D) indicator has been trending downward, suggesting that buyers are not stepping in at current levels. The Relative Strength Index (RSI) also remains in bearish territory, having slipped steadily since RAY’s fall from the $3 level.
A closer look at liquidation data reveals additional downside risk. Coinglass’s 1-month liquidation heatmap shows significant clusters of liquidity in the $2.2 to $2.3 range. These clusters are often targets during high volatility periods, and with RAY trading dangerously close to this zone, a sweep of these levels seems likely. If Raydium falls into this area, it may trigger a round of forced liquidations, potentially amplifying the sell-off.
Interestingly, the heatmap also points to potential support just below current levels. A reversal from the $2.2–$2.25 region could mark a local bottom, especially if spot buyers begin to accumulate aggressively. However, the current sentiment does not yet suggest a bullish turnaround, and market participants appear to be waiting for clearer signs of stabilization.
Looking further out, the 3-month liquidation heatmap indicates that there’s an even larger pool of liquidity at the $2 level. This psychological level could serve as a magnet for price if bears maintain their grip. Should the $2.2 level fail to hold, a drop toward $2 seems plausible and would represent an additional 10% decline from current levels.
For bulls, defending the $2.2 zone is crucial. A bounce from this area, accompanied by increasing volume and improving momentum indicators, could help Raydium recover and re-enter its previous trading range. Without that support, however, RAY risks entering a deeper correction phase, potentially testing long-term support zones and invalidating recent bullish efforts.
As it stands, the pressure is on Raydium’s buyers to prove they still have the strength to turn the tide. Until a clear reaction emerges from the $2.2 region, the short-term outlook remains uncertain, and caution appears warranted.
