Raydium (RAY) has been making waves in the crypto market, trading at $2.32, up 11.73% at press time. With increasing Open Interest and social dominance, RAY is drawing attention from both traders and investors. However, its future performance hinges on breaking critical resistance levels, with a potential rally or pullback depending on how key technical and market factors unfold.

Open Interest Surge and Social Buzz Point to Growing Market Activity

One of the most notable recent developments for RAY is its 65.47% increase in Open Interest, reaching $21.86 million. Open Interest is a critical metric, as rising values typically indicate growing market interest and hint at potential price volatility. This surge suggests that RAY could experience a significant price move soon, but whether it will be a breakout or a pullback remains uncertain.

Along with the increase in Open Interest, RAY’s social dominance rose from 0.192% to 0.407%. This uptick in social buzz signifies heightened interest in Raydium across the crypto community. Despite coming from relatively low levels, the rise in social engagement could translate to increased buying pressure and further momentum for RAY.

Technical Indicators: Key Price Levels to Watch

Raydium’s technical indicators indicate a critical moment for the altcoin. At the time of writing, RAY was testing a key support level at $2.32. If RAY manages to hold this price, a rebound could occur. However, the Relative Strength Index (RSI) stands at 27.24, indicating that the token is in oversold territory. This suggests that RAY could see a price correction if the buying momentum fails to increase.

The moving average cross also suggests a bearish trend, but if RAY breaks through the $2.50 resistance level, it could trigger a bullish reversal. Traders should closely monitor price action above $2.40, as a breakout above this level would indicate strong upward potential.

Declining Activity Signals Caution

Despite the price increase, Raydium has seen a decline in daily active addresses and transaction counts. At press time, daily active addresses were recorded at just 8, and the transaction count was only 2. This decline in network activity could point to a consolidation phase before the next major move. If network activity picks up, RAY could continue its upward trajectory.

The liquidation heatmap for RAY also indicates significant liquidations between $2.30 and $2.40, with a particularly heavy concentration at the $2.40 level. This could serve as a strong resistance point, potentially triggering a wave of liquidations if RAY fails to break through.

Overcoming Resistance: What’s Next for RAY?

RAY’s potential breakout relies on clearing key resistance levels. The token must break through the $2.50 resistance to continue its upward momentum. However, if RAY struggles to surpass these levels, it could face a correction. The heavy resistance around $2.40, coupled with declining network activity, signals that RAY may need more market participation to maintain its bullish momentum.

In conclusion, Raydium’s price action shows potential for a rally, but it needs to overcome significant resistance levels at $2.40 and $2.50. Traders should keep a close eye on network activity, as a pickup in engagement could fuel further price growth, while a lack of momentum may lead to a pullback.