RAY forms cup and handle as Raydium’s DEX volume spikes

Raydium, the largest decentralized exchange on the Solana blockchain, is firing on all cylinders as its token and volume rise.

Raydium (RAY) token rose for six consecutive days, reaching its highest point since July 21. It is up 115% from its September lows, giving it a market cap of over $674 million and a fully diluted valuation of $1.41 billion.

Raydium’s surge has coincided with its impressive performance in the decentralized exchange. Data compiled by DeFi Llama shows that it has become one of the fastest-growing players in the sector.

It handled $8.17 billion in transactions over the last seven days, making it the biggest DEX network in the Solana (SOL) ecosystem. Its volume was much higher than that of all other exchanges combined.

Raydium also has over $1.8 billion in total value locked, making it the 16th biggest DEX in the industry. It is the second-biggest one in the Solana ecosystem after Jito. 

Raydium’s growth is largely driven by the popularity of Solana’s meme coins, which have accumulated a market cap of $11.03 billion. The biggest ones include Dogwifhat, Bonk, Popcat, Cat in a dogs world, and Book of Meme.

Raydium’s popularity is also bolstered by Pump.fun, a platform that allows users to create and launch Solana meme coins within minutes. Data from CoinGecko shows that all Pump.fun tokens have a market cap of $1.87 billion. The biggest of these tokens are Goatseus Maximus, Fwog, Michi, Moo Deng, and Daddy Tate.

Users love Raydium for the thousands of tokens it offers and its low transaction fees compared to other DEX networks.

RAY has formed a cup and handle pattern

Raydium chart by TradingView

The Raydium token bottomed at $1.2460 in August and has bounced back by over 110% to $2.60.

It has formed a golden cross pattern as the 200-day and 50-day Weighted Moving Averages crossed each other. This crossover is one of the most bullish patterns in the market.

The coin has also formed a cup and handle pattern, another popular continuation signal. It has moved to the upper side of the cup pattern and the 23.6% retracement point.

Therefore, the RAY token will likely continue rising as bulls target the important resistance point at $3.29, 27% above its current level.