Raydium [Ray] Cannot Beyond the Resistance Zone of $2.85

Raydium [Ray] failed to break through the $2.85 resistance zone. Although it briefly hit this resistance at the end of April, the price quickly fell with the bearish trend of Bitcoin [BTC] in early May.

Raydium [Ray] failed to break through the $2.85 resistance zone. While it briefly hit this resistance in late April, the price quickly fell back with the bearish momentum of Bitcoin in early May.

While BTC is expected to continue its uptrend, Raydium investors may need to prepare for a long period of consolidation.

Demand has been increasing over the past five weeks; however, it has not yet been enough to drive a breakthrough.

Ray retests high-capacity support zone

As shown, Raydium encountered resistance at the $2.4 level in mid-April. It fell back to $2.15 before soaring to $2.49 above its previous high.

This price action forms a bullish order block, also known as a large capacity support area between $2.22 and $2.30. At the time of writing, prices are trading above the area, laying the foundation for a potential rebound.

The A/D indicator has been forming higher lows since early April, indicating an increasing demand for Raydium utility tokens. However, the recent selling pressure has led to a decline in the A/D line.

If A/D continues to decline, the $2.15 support level may not be maintained.

The MFI has moved below the neutral 50, indicating that the bearish advantage is increasing. Although the crash has not been confirmed, traders should exercise caution.

Liquidation heat map highlights bearish targets

The 1-month liquidation heat map is consistent with the findings of technical analysis.

This also shows that Ray may face further downward pressure. The accumulation of liquidation levels is between $1.97 and $2.08, marking a bearish target.

In addition, the 24-hour heat map sets $2.20 as a short-term goal. A series of long liquidations could push Raydium prices to $2.10 or less.

Therefore, traders can expect to retest the $2.00 to $2.10 demand zone over the next 24-48 hours.

There may be a rebound, but it depends on whether Bitcoin can overcome the $948,000 local resistance.

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