Raydium's RAY token fell 12.06% following a 138% monthly rally, as market participants took profits and sentiment shifted. The correction pushed the asset toward key technical support levels after an extended bull run.
The decline coincided with a broader cooling in crypto market sentiment. The Crypto Fear & Greed Index retreated from 70 to 69, though sentiment remained in the "Greed" zone. Daily trading volume for RAY reached approximately $75.4 million during the sell-off, reflecting significant trading activity.
Derivatives Markets Show Deleveraging
Leverage declined sharply across derivatives markets as traders reduced exposure. Open Interest fell 8.88% to $15.93 million, indicating that leveraged positions were being unwound alongside the price drop.
Liquidation data showed long positions bearing the brunt of the decline, with long liquidations reaching nearly $8.57K compared to $23.66K in short liquidations. This pattern extended a trend that had emerged during September's volatile sessions, with leveraged bullish bets facing consistent pressure.
The falling open interest distinguished this pullback from one driven by aggressive new short positions, suggesting traders were instead minimizing existing exposure rather than establishing new bearish bets. Lower leverage could eventually reduce forced-selling pressure if the token stabilizes near technical support levels.
Spot and Futures Markets Lean Bearish
Selling pressure persisted across both spot and futures venues. RAY recorded approximately $46.26K in positive spot net flows, reversing the previous day's $944.06K in outflows. This influx of tokens onto exchanges increased available supply.
Futures taker data remained seller-dominant, indicating aggressive futures selling continued to pressure the price. Recovery prospects would require both reduced exchange inflows and improved futures demand, conditions not yet present at the time of reporting.
Technical Support at $1.82
Price action brought RAY toward the $1.82 support level, the lower boundary of its rising channel structure. A dragonfly doji candlestick formed at this level, suggesting buyer rejection during intraday testing.
The Parabolic SAR indicator flipped below price at $1.7056, while the Relative Strength Index cooled from overbought territory to 62.26. If bulls defend the $1.82 support, a rebound toward $2.18 and previously swept liquidity regions remained possible. A daily close below $1.82 would weaken the channel structure and signal a deeper retracement.
