The prices of RAY and JUP are positioned for a strong breakout.

In Friday's trading session, decentralized finance protocols (DeFi) such as Raydium (RAY) and Jupiter (JUP) stood out in the group leading the crypto market, benefiting from the strong breakout momentum of Solana (SOL). Technical analysis shows that both Raydium and Jupiter still have room to bounce back, supported by a wave of increasing retail investor demand across platforms and related derivative markets.

TVL and open contracts increase signal potential price increase

The demand for protocols built on Solana along with the derivatives market is booming, reflecting the growing interest from retail investors. According to data from DeFiLlama, the total value locked (TVL) on Raydium and Jupiter has respectively risen to $2.578 billion and $3.580 billion, indicating significantly improved liquidity alongside the expansion of the ecosystem.

Source: DeFiLlamaAt the same time, data from CoinGlass recorded the open interest (OI) of Raydium increasing by 5% and Jupiter increasing by 12% in just the past 24 hours. The influx of capital into the derivative contracts RAY and JUP has pushed OI to 40.67 million USD and 165.17 million USD, reinforcing the growing confidence of traders in the prospects of these two protocols.

Source: CoinGlass## Raydium and Jupiter are poised for a strong bounce back.

As of Friday, Raydium (RAY) continues to rise by an additional 4%, extending the bounce back from the 50-day exponential moving average (EMA) at 3.24 USD. The DEX token on the Solana platform is currently targeting the important supply zone of 3.96 USD, which is seen as a key resistance level.

If the price can break through and close decisively above this level, the bounce back trend is likely to extend to the Fibonacci retracement level of 61.8% at 4.31 USD, and possibly even further to the 78.6% level at 5.87 USD.

Technical signals are reinforcing the bullish outlook: the MACD indicator has crossed above the signal line on the daily chart, giving a clear buy signal, while the RSI at 60 continues to climb, indicating that there is still room for growth before entering the overbought territory.

On the contrary, if RAY fails to break through the threshold of 3.96 USD, a correction scenario may occur, bringing the price back to test the 50% Fibonacci retracement level around 3.47 USD.

RAY/USDT daily chart | Source: TradingViewJupiter (JUP) continues to maintain a positive signal as it increases by an additional 5% at the time of writing, marking a series of 6 consecutive rising sessions. The recovery momentum has surpassed the 200-day EMA at 0.5532 USD, opening up the next target at 0.6339 USD – a price range that was last tested on July 23.

The bullish trend is further supported by the MACD indicator as both the MACD line and the signal line are trending upwards, accompanied by a series of consecutive green histograms on the daily frame, reflecting strong upward momentum. The RSI has also surged to a level of 64, indicating a noticeable increase in buying pressure.

Daily chart JUP/USDT | Source: TradingViewHowever, if the price unexpectedly reverses and falls below the 200-day EMA, the bullish scenario will be quickly negated, bringing the risk of a correction to the 100-day EMA at 0.5068 USD.

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