Raydium (RAY) has been trending upwards in recent weeks. In the past week, this token has increased by 15.15%. This token also shows superior strength compared to Bitcoin and Ethereum (ETH).
Since May, the Total Value Locked (TVL) of Raydium has been on an upward trend. In July and early August, revenue surged significantly, likely due to more active trading. However, in the last two weeks, revenue has declined.
The increase in TVL is seen as an encouraging factor for the long-term bulls of RAY, as it indicates improved liquidity in the protocol and increasing confidence from users as more capital flows in.
However, the TVL of a DeFi protocol can also increase simply due to the increased value of locked assets, even without new deposits.
The increase of Solana (SOL) from $120 in mid-April to $216 at the time of writing has somewhat explained the increase in Raydium's TVL.
What awaits the price of RAY in the near future?
The relative strength of RAY against BTC and ETH is a clear positive signal for the bulls in the short term. On the daily price chart, the market structure has recorded a bullish breakout in early August.
This happened after the price surpassed the local peak at $3.43. Since then, the price has fluctuated around this level during a consolidation phase.
At the time of writing, the OBV indicator is steadily increasing, indicating buying pressure. The RSI is also above the neutral threshold of 50, reflecting momentum leaning towards buyers.
The 4-hour chart shows that RAY is trading in the price range of $3.11 to $4. In the last few hours, this token has been rejected at the upper threshold of the price range and may adjust back to the middle support level at $3.55.
Both the OBV and RSI indicators on the 4-hour chart do not show any signs of bearish divergence. Therefore, traders should expect this range to continue until it is broken and the $4 level is turned into support.
Enter a Long position right now with the expectation that Raydium's breakout may carry significant risks.