Raydium crypto surges 14% as negative funding raises short squeeze prospects
Key Summary
Raydium's RAY token has surged 14% in a single day, driven by negative funding and short squeeze prospects, despite a challenging market. The token has more than doubled in value over the past month, reaching an all-time high of $2.56 on October 7. Despite a decline in funding, the token's trading volume remains strong, with $6.1 billion of $12.4 billion in DEX volume on Solana going through Raydium's pools this year.
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Market Context
Most of the market had a bad week, but Raydium clearly did not get the memo. The token traded around $0.90 before its September breakout and climbed as high as $2.56 on October 7, an increase of roughly 184%. Even after retreating to $2.31, the token remained more than 150% above its early-September level.
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Technical Analysis
RSI was at 66; back in September, it was running above 80. Chaikin Money Flow is positive at 0.06, but well off its September highs. OI went from about $13 million to over $20 million during today's rally. At the same time, funding went deep into the red, close to -0.20%.
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Market Sentiment
A lot of traders opened short positions, betting the pump wouldn't last. OI has since dropped to about $16.3 million, and funding is still negative at -0.08%. Token Terminal data shows $12.4 billion in DEX volume for tokenized stocks on Solana this year. About $6.1 billion of it went through Raydium's pools.
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Market Performance
September is when things really picked up. According to Blockworks, Raydium's tokenized equity volume hit about $260 million last month. In August, it was under $40 million. The most traded ticker? NVDAx, the tokenized version of NVIDIA. There were 115 others, but AI names were clearly what people came for.