- Raydium (RAY) price is rising, driven by ongoing token buybacks.
- The bullish trend is supported by higher highs and a moving average crossover.
- Traders should watch for a breakout at $3.50, with $4.20 as the next major resistance.
Raydium (RAY) is currently experiencing a notable resurgence in price, gaining the attention of both traders and long-term investors across the crypto landscape.
After a strong rally from $2.40 to $3.86, the token has entered a phase of consolidation, now trading around $3.25, signalling the potential for another leg up.
This upward movement is being driven primarily by Raydium’s ongoing token buyback program, which has become a major catalyst in reinforcing bullish momentum within the market.
The RAY token buyback program
Since mid-March, Raydium has maintained steady buybacks, allocating 12% of trading fees toward purchasing RAY from the open market.
Although the intensity of the buybacks has slightly tapered off, their continued presence and periodic spikes have provided a solid base of demand for the token.
Raydium price analysis
The technical setup has also turned decisively positive, with RAY printing a consistent series of five higher highs and higher lows, which signals a strong uptrend.
At the same time, the price has remained above both the 20-day exponential moving average and the 50-day simple moving average, reinforcing the bullish sentiment among traders.
These two indicators have maintained a bullish crossover since mid-April, and this trend has yet to show signs of weakening.
Currently, local resistance lies at $3.50, and a successful breakout above this level could trigger a swift move toward the next key resistance at $4.20.
That target level previously acted as a critical support zone before the February sell-off and now stands as the next bullish milestone.
Should Raydium manage to reach $4.20, it would represent a nearly 30% gain from its current trading level, drawing even more attention to the asset.
The Relative Strength Index (RSI) is currently near 57, indicating that the token is neither overbought nor oversold, and suggesting there is ample room for further gains.
If $4.20 is breached, the next notable resistance level sits near $5.70, where the token faced repeated rejections before and after the rally that peaked in January.
Despite the bullish setup, a decline below the key support level of $2.20 would invalidate the upward thesis and open the door to potential downside toward $1.50.
Nonetheless, the trend remains structurally strong, with momentum indicators supporting continued upside in the near term.
The platform also boasts a total value locked (TVL) of over $2.07 billion, highlighting its prominent role in the Solana-based DeFi ecosystem.
In the last 24 hours alone, the trading volume has exceeded $79.5 million, which reflects heightened interest in the token during this consolidation phase.
From a historical perspective, Raydium reached an all-time high of $16.83 in September 2021, while its lowest point came in December 2022 at $0.1344.
Since then, the cryptocurrency has shown a significant recovery, supported by both market participation and internal initiatives like token buybacks.
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