The Exchange Altcoin on the Solana Network May Be Dangerous: Here are Two Metrics for a Decline Signal! - Coin Bulletin

Raydium's RAY token is drawing attention with high leverage trading and record trading volume, while it is noted that overbought positions could pose a risk for price declines.

According to CoinDesk's analyst, RAY, the native cryptocurrency of the Solana-based decentralized exchange Raydium, is drawing attention in the crypto market with rising funding rates and overbought positions. However, this intense interest creates a risky market dynamic.

High funding rates in RAY Coin

According to VeloData, RAY token, exceeding 160% in annualized continuous futures funding rates, became the most prominent asset among small, medium, and large-scale tokens. This indicates the formation of excessively leveraged long positions in the market. However, experts point out that such imbalances could result in rapid closure of long positions in price declines, further deepening the price drop.

Surpassed Ethereum

Raydium's trading volume reached 117.8 billion dollars this month, doubling the total volume of Ethereum-based decentralized exchanges. It also generated 175 million dollars in transaction fees, surpassing Ethereum's 168 million dollars in revenue. However, most of these volumes occurred during the meme coin frenzy at the beginning of the month, and there has been a weakening in Raydium's momentum in recent weeks.

RAY, despite a 17% final correction, rose 67% throughout the month. However, experts note that the fundamental dynamics supporting the price increase have weakened as the influence of memecoins diminishes.

According to CoinGecko data, RAY, which experienced a full 1,350% increase in the last year, is currently trading at 5.4 dollars with a 3.7% pullback in the last 24 hours.

• The information in the content does not constitute investment advice