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 increases.

Raydium (RAY) token rose for six consecutive days, reaching its highest point since July 21. It’s 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 rise coincided with its impressive performance on the decentralized exchange. Data compiled by DeFi Llama shows that it has become one of the fastest growing players in the industry.

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

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

Raydium’s growth is largely driven by the popularity of Solana’s meme coins, which have amassed 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 supported by Pump.fun, a platform that allows users to create and launch Solana meme coins in minutes. Data from CoinGecko shows that all Pump.fun tokens have a market cap of $1.87 billion. The largest of these tokens are Goatseus Maximus, Fwog, Michi, Moo Deng and Daddy Tate.

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

RAY created a cup and stem model Raydium chart by TradingView

The Raydium token dropped to $1.2460 in August and rose to $2.60, an increase of over 110%.

A golden cross pattern was formed by the intersection of the 200-day and 50-day Weighted Moving Averages. This crossover is one of the most bullish formations on the market.

The coin also formed the cup and handle pattern, another popular continuation signal. It moved to the top of the cup formation and the 23.6% retracement point.

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