Raydium (RAY) is on a tear. Despite the usual volatility across all crypto assets, including blue-chip meme coins like Dogecoin and Pepe, the token is up 215% this year.
Raydium Rallying But Traders Must Be Cautious
Taking to X, the analyst maintains that RAY will likely continue rallying as long as Pump.fun, the meme coin launchpad on Solana, is token-free. RAY is within a breakout pattern at spot rates, easing past March and July highs and printing a new 2024 high in the process.
As it is, not only did buyers force the token above these two major liquidation levels, but it impressively shook off the weakness of August and September, more than doubling from September lows in the process.
As crypto sentiment improves, the odds of RAY edging higher for the better part of Q4 2024 will only increase. For now, traders expect the “uptober” to benefit altcoins the most. If Bitcoin, Ethereum, and Solana prices tick higher, breaking key resistances in the coming sessions, other quality DeFi tokens, including RAY, will find major tailwinds.
Despite the confidence that Q4 of every trading year brings, Bitcoin has been moving sideways, struggling to breach $70,000. If there is an upswing, perhaps triggered by the outcome of the upcoming general election in the United States, RAY could extend gains in the process.
Will A Pump.fun Token Slow Down RAY Bulls?
The pace at which RAY expands, recouping losses of 2022, will also depend on other market factors, including meme coin activity on Solana.
Additionally, traders will determine whether Pump.fun will launch their native utility and governance token. This is crucial because liquid tokens, surpassing the 69 SOL market cap threshold, are automatically listed on Raydium.
Pump.fun is one of the most active platforms on Solana, aiding the minting of over 2.7 million meme coins on Solana. Due to this, the meme coin launchpad has generated over $152 million in fees, according at Dune Analytics. The eventual launch of a Pump.fun governance token will allow the platform to tap value, taking advantage of its valuation and virality.
The team revealed plans to launch their token and a trading bot in a recent Twitter Spaces. As positive as this may be, there is no specific timeline for the token’s launch.
A Pump.fun token could attract liquidity away from RAY, possibly dampening the DEX’s growth despite the Pump.fun-Raydium current relationship, investors will find the meme coin launchpad’s token more attractive, especially if it serves a useful purpose and allows holders to participate in governance.