Raydium’s 138% monthly uptick encountered a sharp reset as RAY dropped 12.06%, as weakening market sentiment triggered profit-taking across the market.
Particularly, the retracment followed an extended rally that had pushed RAY into increasingly into overheated conditions.
Besides profit-taking activity, the broader conditions also became less supportive during the decline. Notably, the Crypto Fear & Greed Index declined from 70 to 69, although sentiment maintained within “Greed.”
The asset’s daily trading volume, meanwhile, reached approximately $75.4 million, validating strong participation during the sell-off.
The combination of profit-taking and cooling market sentiment, therefore, put RAY’s recovery under its strongest recent pressure.
Leverage retreats as longs take the hit
Also notably, the derivatives market participants minimized exposure as RAY’s retracement spread beyond the spot market.
In particular, Open Interest declined 8.88% to $15.93 million, suggesting leverage left the market alongside the falling price.
Additionally, the recent liquidation activity provided another element to the deleveraging trend. Notably, the long liquidations dominated during the latest reading, reaching nearly $8.57K compared to just $23.66 in shorts.
It is also worth noting that the larger long-liquidation spikes had already appeared during most of the September’s volatile sessions. The recent decline, therefore, extended a broader pattern of leveraged bullish positions facing pressure.
The falling OI also distinguished the pullback from one driven primarily by aggressive new short positioning. Market participants rather appeared to minimize prevailing exposure as Raydium surrendered its recent gains.
Even so, the lower leverage could still eventually reduce forced-selling pressure in case Raydium stabilizes around nearby technical support.
Spot and Futures sellers tighten pressure
Furthermore, selling pressure also emerged across both Spot and Futures activity, validating the case for continued near-term caution.
At the time of reporting, RAY had recorded approximately $46.26K in positive Spot netflows flipping from -$944.06K outflows of the previous day.
The inflows implied more tokens entering exchanges, increasing available supply on the exchange side.
The Futures Taker CVD metric, meanwhile, remained seller-dominant, suggesting aggressive futures sellers retained control. So, the Spot supply and Futures positioning leaned against an immediate price recovery.
The recent spot inflow, however, remained modest as compared to the several earlier spikes. RAY would therefore need easing exchange inflows and improving futures taker demand to validate any recovery attempt.
Until then, the bears retain an advantage across both the spot and futures markets.
Can $1.82 keep the channel alive?
Raydium’s [RAY] correction from above the $2.18 zone erased its recent breakout attempt, bringing the price directly towards the $1.82 support.
The price fall also pulled Raydium towards the lower boundary of its rising channel without breaking the broader structure.
Significantly, the latest candle formed a dragonfly doji after testing the $1.82 level, showing buyers were rejected deeper intraday losses at the that time.
Additionally, the Parabolic SAR indicator flipped below price at $1.7056, while RSI cooled from overbought conditions to 62.26.
Therefore, the $1.82 support level now separates a controlled correction from a potentially deeper retracement.
In case bulls successfully defend this level, Raydium could rebound towards the $2.18 area and retest the recently swept liquidity region.
However, the rebound prospects could be invalidated in case of a daily close below the $1.82 support, weakening the channel structure.
Final Summary
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RAY’s 12% correction intensified as leverage declined and futures sellers remained dominant.
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Defending $1.82 could preserve RAY’s rising channel and reopen a move toward $2.18.
