Raydium (RAY/USD) Elliott Wave analysis: Wave II correction approaching completion

Raydium (RAYUSD) Elliott Wave analysis indicates Wave II correction is in progress, with a potential bullish Wave III rally expected after reaching the blue box support zone.

Raydium (RAYUSD) completed a clean five-wave impulse from the January 2023 low, reaching $8.6642. According to Elliott Wave analysis, this move marked the end of Wave I. Since then, the price has turned lower to correct the cycle within Wave II.

The correction is unfolding as a 3, 7, or 11-swing structure. So far, we have already seen five waves down in ((A)). After this drop, Raydium is pulling back in ((B)), where we expect Wave (Y) to complete inside the parallel channel. The channel is drawn from ((A)) to (X) and runs parallel to (W), acting as a guide for the short-term path.

Once Wave (Y) ends, we anticipate another five-wave decline to the blue box area. This zone, based on Fibonacci levels, sits between the 0.5 and 0.618 retracement levels. Buyers are expected to step in here, making this area critical for the next potential rally. From this blue box, a larger bullish Wave III is likely to start. Historically, Wave III tends to be the strongest and fastest wave, often delivering significant upside. As long as Raydium stays above the January 2023 low, the broader bullish view remains valid.

For now, traders should avoid chasing the short-term pullbacks and wait for price action near the blue box support. Once the setup confirms, the Elliott Wave count suggests a strong bullish opportunity ahead.