Raydium rises around 9.5% as StonkFun launch on LaunchLab platform boosts demand

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Raydium surges 9.57% today on momentum

Highlights

Raydium activity increased after StonkFun's LaunchLab listing, boosting transaction volume and RAY token utility.
The protocol buys back and burns RAY using 12% to 25% of trading fees, projecting over 30% supply reduction by late August 2026.
RAY/USD trades in a strong bullish trend with 80% probability of moving to a $0.9505 to $1.4257 range over five days.

RAY buyback and protocol upgrades drive volume and short covering

Raydium saw elevated activity following the launch of StonkFun on its LaunchLab platform, which enabled new token listings with enhanced liquidity. StonkFun's integration brought notable transaction volume and increased utility for the RAY token. The protocol's fee allocation mechanism, directing 12% to 25% of trading fees to buy back and burn RAY tokens—removing over 30% of the circulating supply by late August 2026—also contributed to heightened market activity. Additional drivers included a short squeeze and ecosystem upgrades, as well as increased DeFi participation on Solana.

Anton Kharitonov, expert at Traders Union, notes the surge in RAY price follows hype around StonkFun and aggressive buybacks, but warns the move is fueled by short squeezes and speculative DeFi flows. He highlights that RSI readings above 88 and elevated volatility hint at overextension, exposing risk to profit-taking or reversal. The analyst is cautious about the sustainability of demand in the face of stretched indicators. He believes the protocol’s fee burn may not outweigh speculative risks if sentiment shifts. "Traders should beware of exhaustion signals and recognize that sharp gains often attract equally sharp corrections," advises Kharitonov.

Viktoras Karapetjanc, expert at Traders Union, sees Raydium’s move as healthy and backed by strong fundamentals. He points to robust utility from the LaunchLab platform and the ongoing supply reduction mechanism. Karapetjanc highlights that ecosystem upgrades and higher DeFi activity on Solana underpin confidence in sustained growth. "With its bullish structure intact and clear pathways to higher price levels, I expect RAY to deliver further upside as demand and network participation deepen," Karapetjanc states.

Jainam Mehta, market strategist, observes that RAY maintains a bullish technical backdrop, but warns sentiment is overheated. He sees volatility as both an opportunity for breakout trades above $1.3414 and a risk for quick reversals. Mehta suggests tactical traders watch for a momentum pullback before reentering. "The best setups will come from price action near the support at $1.17 or a decisive breakout above $1.3414," says Mehta.

Overbought signals intensify as volatility tempers bullish advance

RAY/USD is trading above its 20-day, 50-day, and 200-day moving averages ($0.8008, $0.6982, and $0.6732 respectively), confirming a bullish structure for the short, medium, and long term. The near-term ceiling is set at $1.3414, with support at $1.17, and the Ichimoku Kijun at $1.0246 underpins the bullish setup. Momentum signals remain strong: the Relative Strength Index (RSI) is deeply overbought at 88.29, confirming aggressive buying. MACD and Average Directional Index (ADX) both point upward, indicating robust momentum. Stochastic RSI and Commodity Channel Index (CCI) are both extremely elevated, highlighting a stretched, overbought state. Bull/Bear Power (BBP) shows buyers clearly dominate, and its overbought reading reinforces this view. The Awesome Oscillator (AO) confirms positive momentum as well. Today the pair advanced $0.1038 or 9.57%, with an upside gap of about $0.20 (18.58%). Price is trading near the day's low after high volatility (14.65%), suggesting that some intraday pressure followed the opening surge. Intraday performance aligns with momentum signals but also warns of exhaustion.

Earlier, analysts noted that Raydium was demonstrating sustained bullish momentum fueled by ecosystem expansion and strong technical signals. The current breakout above all major moving averages and elevated momentum indicators reinforces this outlook, with the next key area for traders to monitor being a decisive move beyond the $1.3414 resistance.

Source of Data: RAY Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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