The post Raydium corrects 12% after a 138% monthly run – Is RAY losing strength? appeared on BitcoinEthereumNews.com.
Raydium’s 138% monthly uptick encountered a sharp reset as RAY dropped 12.06%, as weakening market sentiment triggered profit-taking across the market. Particularly, the retracment followed an extended rally that had pushed RAY into increasingly into overheated conditions. Besides profit-taking activity, the broader conditions also became less supportive during the decline. Notably, the Crypto Fear & Greed Index declined from 70 to 69, although sentiment maintained within “Greed.” The asset’s daily trading volume, meanwhile, reached approximately $75.4 million, validating strong participation during the sell-off. The combination of profit-taking and cooling market sentiment, therefore, put RAY’s recovery under its strongest recent pressure. Source: CoinMarketCap Leverage retreats as longs take the hit Also notably, the derivatives market participants minimized exposure as RAY’s retracement spread beyond the spot market. In particular, Open Interest declined 8.88% to $15.93 million, suggesting leverage left the market alongside the falling price. Additionally, the recent liquidation activity provided another element to the deleveraging trend. Notably, the long liquidations dominated during the latest reading, reaching nearly $8.57K compared to just $23.66 in shorts. It is also worth noting that the larger long-liquidation spikes had already appeared during most of the September’s volatile sessions. The recent decline, therefore, extended a broader pattern of leveraged bullish positions facing pressure. The falling OI also distinguished the pullback from one driven primarily by aggressive new short positioning. Market participants rather appeared to minimize prevailing exposure as Raydium surrendered its recent gains. Even so, the lower leverage could still eventually reduce forced-selling pressure in case Raydium stabilizes around nearby technical support. Source: CoinGlass Spot and Futures sellers tighten pressure Furthermore, selling pressure also emerged across both Spot and Futures activity, validating the case for continued near-term caution. At the time of reporting, RAY had recorded approximately $46.26K in positive Spot netflows flipping from -$944.06K outflows…