Raydium's price poised for a 30% rise, boosted by RAY buybacks encouraging a bullish trend.
Raydium's native token, RAY, displays a resilient bullish pattern, increased by 10% over the past 24 hours to trade around $3.30. This surge follows a 60% rally from $2.40 to $3.86, with the price structure exhibiting five consecutive higher highs and higher lows, indicating a robust uptrend.
The driving force behind this surge appears to be Raydium's continuous token buyback program, which garners 12% of trading fees for repurchasing RAY tokens. Although buybacks have slowed since mid-March, they have remained steady with occasional spikes. As a result, the current RAY price trades above both the 20 EMA and 50 SMA, which have maintained a bullish crossover since mid-April.
Furthermore, $3.50 represents the local resistance level for RAY. A decisive breakout above this level could pave the way for the next key resistance at $4.20, a critical horizontal level that served as support for multiple months before the late February sell-off. A rally to $4.20 would signify nearly a 30% increase from the current prices. In the absence of significant roadblocks, the next major hurdle is around $5.70, a level at which the price was repeatedly rejected before and after the January rally peaked at $8.60.
Should RAY drop below the $2.20 support, however, a potential downward trend towards $1.50 could materialize. Given the sustained bullish crossover between the 20 and 50 EMAs and the consistent series of higher highs and lows over nearly two months, the overall trend remains optimistic.
In summary, the ongoing token buyback program by Raydium is a key contributor to the RAY's recent price surge. As long as demand outpaces supply, the primary resistance levels at $4.20 and $5.70 may be breached, ushering in further appreciation for the digital asset. Monitoring on-chain activity provides insights into demand trends that impact resistance formation, offering valuable information for investors and analysts.
- The ongoing token buyback program by Raydium, which collects 12% of trading fees to repurchase RAY tokens, appears to be a significant factor driving the surge in RAY's price.
- The DEX (Decentralized Exchange) platform, Binance, may be a potential venue for trading RAY tokens, given the continuous buybacks and the resilient bullish pattern demonstrated by the token.
- The technology behind Tron could potentially facilitate the integration of Raydium's token, RAY, due to its support for various cryptocurrencies and the growing interest in Initial Coin Offerings (ICOs).
