After Bitcoin (BTC/USD) fell by over $10000 on Saturday, many coins slumped in price by over 20%. It was one of the largest sell-offs in a day ever, and many investors got liquidated from their long positions however the crash has given an opportunity for investors who missed the previous rally. Raydium (RAY/USD) fell by over 25% and approached a crucial support level for Ray.
The $9.1 mark has been a very important demand zone for Ray as it has reversed from the same level multiple times in the past few months, this is also a great zone to buy as buyers seem to return at this level. Ray was up over 27% before the fall, which could be an indication that a breakout is about to be seen.
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Ray has formed a descending triangle and has tried breaking out multiple times in the past few months however it has weakened the resisting trendline after testing it multiple times.
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The support at $9.1 has proved to be extremely strong as Ray has not broken down below it even after testing it multiple times.
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Ray also recovered on Saturday as it climbed back up to the zone after falling down to $8. This is pointing towards a false breakout which is a strong indicator that a breakout could be seen soon, thus Ray is looking bullish for the coming weeks.
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The RSI is also at the support level of $35, this has been the level from which buyers have returned thus buyers could be seen returning soon.
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Investors must be cautious as Ray could still break down from the zone thus any long entries should be taken only once a clear reversal is seen.
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Ray could breakout soon, and a target of $11.4 can be set, followed by a target of $13.5.
