bullish

Raydium

April

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Raydium recorded a strong rally over the past month, putting it in the overbought zone. But its funding rate shows the possibility of a further hike. 
Raydium (<a href="https://crypto.news/price/raydium/" target="_blank">RAY</a>) is up 83% over the past month and gained 33% in the last seven days alone. The native token of the Solana-based <a href="https://crypto.news/glossary/automated-market-maker-amm-in-defi/" target="_blank">automated market marker</a> reached a 31-month high of $3.59 earlier today—a level last seen in April 2022. 
RAY saw a small drop over the past few hours and is trading at $3.25 at the time of writing. At this point, the token is down by 81% from its all-time high of $16.93 on Sept. 13, 2021. 
With a market cap of $858 million, <a href="https://crypto.news/ray-forms-cup-and-handle-as-raydiums-dex-volume-spikes/" target="_blank">Raydium</a> is currently the 75th-largest digital asset in the market. 
 You might also like: <a rel="" href="https://crypto.news/hege-sol-safe-top-cryptocurrencies-to-watch-this-week/"> HEGE, SOL, SAFE: Top cryptocurrencies to watch this week </a> 
<h2 class="wp-block-heading" id="can-ray-rally-again">Can RAY rally again?</h2> 
According to data provided by Santiment, Raydium’s Relative Strength Index is sitting close to the 80 mark. The indicator shows that the asset is overbought and potential profit-taking could be on the way. 
<figure class="wp-block-image size-full">
 <img loading="lazy" decoding="async" width="3840" height="1300" src="https://crypto.news/app/uploads/2024/10/Raydium-RAY-11.12.33-28-Oct-2024.png" alt="Raydium is overbought but could still rally if this happens - 23" class="wp-image-14306307">
 <figcaption class="wp-element-caption">
 RAY price, RSI, open interest and funding rate | Source: <a href="https://app.santiment.net/charts/SD4WSqpt__sCl" target="_blank" rel="nofollow">Santiment</a>
 </figcaption>
</figure> 
Raydium’s total open interest, however, increased by 65% over the past day—from $4.5 million to $7.4 million, per Santiment. 
A sudden surge in an asset’s open interest usually leads to higher price volatility due to increased liquidations. 
RAY’s open interest grew with a wave of traders betting on the token’s price fall. Data from Santiment shows that the total Raydium funding rate shifted from 0.06% on Oct. 26 to -0.06% at the reporting time. 
The funding rate shows an increased amount of short trades, dominating RAY’s open interest.&nbsp; 
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 <a href="https://crypto.news/global-volatility-slows-bitcoin-but-ethereum-could-surge-report/" target="_blank">volatility</a> as the market is still wandering in <a href="https://crypto.news/bitcoin-whales-unsure-ahead-of-us-election-large-holder-net-inflows-plunge-from-38800-to-258/" target="_blank">uncertainty</a>.&nbsp; 
 Read more: <a rel="" href="https://crypto.news/crypto-vc-funding-stripe-bridge-bluesky-15-million/"> Crypto VC funding: Stripe buys startup Bridge for $1.1b, Bluesky bags $15m </a>

Raydium is overbought but could still rally if this happens

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