Raydium (RAY) Rallies 83% in a Month, Can It Go Higher?

Raydium (RAY) is up 83% over the past month and gained 33% in the last seven days alone. The native token of the Solana-based automated market marker reached a 31-month high of $3.59 earlier today—a level last seen in April 2022.

Solana-based automated market maker Raydium (RAY) recorded a notable surge of 83% in the last 30 days. The digital asset saw a further 33% increase in the last seven days.

At the reporting time, RAY is trading at $3.25. The token saw a slight decrease over the past few hours. However, it attained a 31-month high earlier today, reaching $3.59.

With a market cap of $858 million, Raydium is currently the 75th-largest digital asset in the market. At this point, the token is down by 81% from its all-time high of $16.93 on Sept. 13, 2021.

Relative Strength Index Shows Overbought Zone, But Funding Rate Might Fuel Further Rally

According to data provided by Santiment, Raydium’s Relative Strength Index is sitting close to the 80 mark. RSI is an indicator that shows whether an asset is overbought or oversold. An asset is considered overbought when the RSI crosses above 70, indicating potential selling pressure.

Raydium’s RSI being in the overbought zone suggests that traders may be taking profits after a strong rally. However, the total open interest in Raydium increased by 65% in the last 24 hours, rising from $4.5 million to $7.4 million.

A sudden surge in an asset’s open interest usually leads to higher price volatility due to increased liquidations. In the last 24 hours, traders opened more short positions on Raydium, leading to a negative funding rate.

At the beginning of last week, the funding rate for short Raydium was 0.06%. But the rate shifted drastically and reached -0.06% on Oct. 29.

The funding rate shows an increased amount of short trades, dominating RAY’s open interest. If short RAY liquidations begin to rise, the asset could likely witness another bullish momentum. However, the increasing open interest and RSI hint at high price volatility as the market is still wandering in uncertainty.

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