Raydium experienced notable upside momentum after holding support at $0.80 and rallying to flip the $1 mark, touching an eight-month high of $1.19. Trading around $1.09, the altcoin posted a 24-hour gain of 33%, while daily trading volume surged 876% to reach $114 million and market capitalization increased by 32%.
Buyback Program and Staking Activity
Market participants noted that Raydium's protocol buyback program has helped stabilize the market and reduce selling pressure. The protocol directs 86% of its total revenue toward token buybacks, utilizing 12% of every swap fee for open-market RAY purchases across three pools, while the treasury holds the remainder alongside 4% from swap fees. Since announcing its fee-funded buyback program on August 31, the protocol has spent $190 million in cumulative buybacks to acquire over 69 million RAY, representing more than 30% of the total circulating supply.
In addition to buybacks, open-market supply has been absorbed by staking. Staked supply reached $36 million, further reducing available supply and lowering market pressure.
Profit-Taking and Technical Indicators
As the asset rallied to levels last seen in January, some holders opted to cash out gains. Raydium's Spot Netflow climbed to a four-month high of $561,000. On-chain data indicated that inflows stemmed partly from small whales unstaking tokens, including 260,000 RAY deposited to Binance and 191,000 RAY deposited to Gate, totaling 451,000 tokens valued at $500,000.
Despite profit-taking, technical indicators reflect strong buying pressure. The Relative Strength Index reached an overbought level of 84, while the DI+ of the Directional Movement Index formed a bullish crossover to 54, confirming the prevailing trend.
