Raydium, a cryptocurrency that has recently experienced a significant drop in value, is showing signs of potential recovery. Despite maintaining a bearish structure, the Chaikin Money Flow (CMF) indicator is indicating buying pressure. However, traders are advised to proceed with caution and consider booking profits if already in a long position.
The recent price action of Raydium has been volatile, with the cryptocurrency down nearly 20% from its recent high. The struggle of the bulls with the $6.3-$6.5 resistance zone has been ongoing, and the question remains whether they can breach this level once again.
On the technical side, Raydium has been trading within a range formation established in November, lasting until mid-January. Recent losses have led to a short-term trend shift, with the price bouncing from near-the-range lows at $4 and retesting the mid-range level at $5.17 as support. The CMF indicator has shown significant capital inflows, while the Bollinger Bands indicate high volatility, with the upper band serving as a short-term resistance.
The liquidation heatmap highlights magnetic zones at $6.64 and $5.7, with the former being closer and stronger. This suggests a potential move to $6.7-$6.8 in the near future, with a possible retest of the psychological $7 level. Given the bearish market structure, long traders are advised to consider taking profits, while longer-term investors may want to wait for a positive reaction from the $6.5-$7 region before making any significant moves.
In conclusion, Raydium’s price action is on the verge of a potential turnaround, but caution is advised due to the ongoing volatility in the market. It is important to conduct thorough research and consider all factors before making any trading decisions. This information is for educational purposes only and should not be considered as financial advice.