Raydium Coin (Ray) with 20% of bullish circular pattern form over 20%

The DEFI protocol token based on Solana, Raydium Coin (Ray), has surged by more than 20% in the past 24 hours.

According to Benzinga Pro, the DEFI project token, Raydium Coin (Ray), based in Solana, has surged by more than 20% in the past 24 hours.

As of Monday morning, Ray was trading around $3.79 to $3.80. The rally pushed its market value to more than $1.1 billion, while trading volume surged to $204 million, an increase of nearly 57%.

Technical analysis shows that Raydium prices may be in the stage of preparing for a large-scale breakthrough, which was pointed out by multiple technical indicators, chart patterns and analyst comments.

Raydium Coin forms a bullish round bottom pattern.

Crypto analyst Ijaz Awan stressed Ray's bullish outlook on X (formerly Twitter), pointing to the "circular" pattern on its daily chart. This pattern is known for signal long-term trend reversals, with its neckline at $4.20.

"If it can break through the neckline, I'll see a road to the $7 range, which will be twice the current price," Awan wrote.

The graph shows a clear accumulation zone and circular merge, usually observed during the construction phase of the main trend. This type of foundation formation usually indicates a strong breakthrough. The $4.20 neckline will be the next key resistance level to focus on. A confirmation breakout above this level may trigger a parabolic movement of the Raydium token.

Despite optimism, other analysts remained more cautious. In another article on X, technical analyst Nolicy expressed caution about Ray's approach to the "critical rejection area."

“On Raydium, we are approaching a critical rejection zone. We can think of the price action as a second wave with a shallow second wave that will re-establish the bull trend, or the constant rejection from the $4.20 to $5 zone will make the bear market scenario a longer correction. If the price goes above $5, we can expect to rise to $17 to $20.”

Traders further explained that failure to break through could lead to a sharp decline. However, according to technical indicators, if the token manages to exceed $5, it could indicate a potential rise to $17 or even $20.

According to Nolicy, Raydium is experiencing a shallow second wave, a technical term derived from Elliott Wave theory that may indicate the beginning of a larger uptrend. Additionally, his post contains time-based Fibonacci predictions that converge around August, meaning the upcoming two months could be key to determining Ray's long-term direction.

Raydium token price chart confirms technological breakthroughs.

According to Centralcharts, Raydium tokens recently closed at $3.80 at a 50-day and 100-day moving average, currently at $2.34 and $2.85, respectively. This exercise is a significant sign that the token strength continues to increase.

Additionally, analysis shows that Raydium Coin has now surpassed the average Bollinger band price of $2.89, and even broke through the upper Bollinger band at $3.52. This type of move usually indicates an increase in buying pressure and an increase in volatility, which is typically observed during the initial stages of a trend reversal.

Looking ahead, the first important resistance level is $4.20, which is consistent with the neckline of the potential round bottom pattern. If the price manages to break this threshold in sufficient quantities, it may lay the foundation for a sustained upward trend.

The next key barrier is $5, a level of psychological and technical importance. Breakthroughs beyond the region could generate considerable growth potential that could extend to double-digit numbers.

Raydium Coin (Ray) price has risen 10.98% in the past hour as of Monday morning and is now trading for $3.79.

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