Raydium Crashes 12% After 138% Monthly Surge: Can Bulls Save the Rising Channel?

Raydium's price suffered a significant correction of 12% after a remarkable 138% monthly increase, sparking concerns that the asset may be losing strength. The decline was attributed to profit-taking and weakening market sentiment, with the Crypto Fear & Greed Index dipping from 70 to 69, although remaining in 'Greed' territory.

The sharp reset also led to a decrease in derivatives market participation, as Open Interest fell by 8.88% to $15.93 million. Long liquidations dominated during this period, with nearly $8.57K being liquidated compared to just $23.66 in shorts. This trend suggests that leveraged bullish positions are facing significant pressure.

Selling pressure also emerged across both Spot and Futures activity, further validating the case for caution. Despite a modest increase in Spot netflows of approximately $46.26K, the inflows imply more tokens entering exchanges, increasing available supply on the exchange side. The Futures Taker CVD metric remained seller-dominant, suggesting aggressive futures sellers retained control.

The price correction has brought Raydium's price directly towards the $1.82 support level, which now separates a controlled correction from a potentially deeper retracement. If bulls successfully defend this level, Raydium could rebound towards the $2.18 area and retest the recently swept liquidity region.