Raydium (RAY) Increases 215% This Year Amid Market Volatility
Raydium (RAY) has increased 215% this year, despite general volatility in the cryptocurrency market, including major meme coins like Dogecoin and Pepe.
Raydium Rallying But Traders Must Be Cautious
Analyst insights on X suggest that RAY may continue its upward trend as long as Pump.fun, a Solana-based meme coin launchpad, remains token-free. RAY is currently experiencing a breakout pattern, surpassing March and July highs to achieve a new peak for 2024.
Buyers have driven the token above significant liquidation levels, recovering from August and September's downturns, more than doubling from September lows.
As crypto sentiment improves, RAY's chances of further gains in Q4 2024 are heightened. Traders anticipate that "uptober" will favor altcoins. Should Bitcoin, Ethereum, and Solana prices rise and breach key resistance levels, other DeFi tokens, including RAY, could experience significant support.
Despite positive Q4 expectations, Bitcoin has been stagnant around $70,000. An upswing, possibly influenced by the upcoming U.S. general election, could further benefit RAY.
Will A Pump.fun Token Slow Down RAY Bulls?
The rate at which RAY recovers from 2022 losses depends on broader market dynamics, particularly meme coin activity on Solana.
Traders are also watching for the potential launch of a native utility and governance token by Pump.fun, which is critical since liquid tokens exceeding a 69 SOL market cap threshold get automatically listed on Raydium.
Pump.fun has minted over 2.7 million meme coins on Solana, generating over $152 million in fees according to Dune Analytics. The introduction of a governance token could enhance the platform's value and virality.
The team recently announced plans for a token launch and trading bot during a Twitter Spaces event. However, no specific timeline for the token's release has been provided.
A Pump.fun token could divert liquidity from RAY, potentially slowing growth for the DEX. Investors may find the new token appealing if it offers practical benefits and governance participation.