Crypto asset Raydium experiences a 10% decline over a 24-hour period, with short positions gaining dominance; potential for additional setbacks?
Unleashing the Raydium Rumble
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Short traders on Raydium's [RAY] have cashed in big-time, while longs have taken a hit. With no recovery in sight, a potential price plunge seems imminent.
Raydium's tumble by 10%, countering last week's surging rally, leaves investors with a net gain of 4.83%. However, our analysis indicates that RAY is teetering on the edge, vulnerable to a larger fall.
Zero short liquidation - What does it mean for RAY?
With RAY's recent plunge, the specter of further devastation looms. Liquidation data reveals that short traders are pulling off a streak, with no short liquidation events reported at press time.
According to CoinGlass, total liquidations amounted to $67,020, all from long positions. This $0 short liquidation suggests that short traders have accurately predicted the market swings, fueling speculation for an intensified sell-off.
Adding to the bearish tidings, the Taker Buy-Sell Ratio (aka the Long-to-Short Ratio) shows an astounding surge in selling volume. This ratio, typically neutral at 1, is indicative of heightened selling activity compared to buying, in this case, reading 0.7703 at the time of writing, with sellers clearly outnumbering buyers.
Hope, but barely
Despite the grim outlook, spot traders' steadfast accumulation of RAY offers a glimmer of hope. Driven by potential discount-hunting, these buyers have spent $1.269 million on RAY purchases. If this trend persists, it might help stem the slump.
However, the broader market sentiment remains bearish, with selling activity reigning supreme.
Is a 10% tumble on the horizon?
The 1-day chart reveals that RAY has burst past its ascending channel, heading south. Historically, a breakaway from this pattern prepares the stage for a possible 10% drop from current levels.
The discouraging tech indicators back this prediction. The Bull-Bear Power indicator showcases strong bearish momentum, evidenced by red histogram bars. Similarly, the Moving Average Convergence Divergence (MACD) indicator confirms a bearish crossover, underscoring the onset of a new bearish trend.
If these signs persist, the already shaky Raydium might be in line for further losses, especially if discount-chasing traders halt their accumulation spree.
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- The zero short liquidation on Raydium suggests that short traders have accurately predicted the market swings, fueling speculation for an intensified sell-off, especially considering the high selling volume indicated by the Taker Buy-Sell Ratio.
- Although the steady accumulation of RAY by spot traders offers a glimmer of hope, the broader market sentiment remains bearish, with selling activity reigning supreme, potentially augmenting the downward trend in RAY's price.
- The 1-day chart showing a breakaway from Raydium's ascending channel and the discouraging tech indicators, such as the Bull-Bear Power indicator and the Moving Average Convergence Divergence (MACD) indicator, point towards the possibility of a 10% drop from current levels, potentially causing further losses for Raydium if the bearish trends persist.
