- ORDI rose immediately after Bitcoin’s halving
- However, statistics suggest that the price rally in the charts may be short-lived
Cryptocurrency token ORDI, closely tied to the Bitcoin Ordinals protocol, has registered a double-digit price increase in the past 24 hours, according to CoinMarketCap. The token’s price increase follows the completion of Bitcoin’s fourth halving during the early trading hours of April 20 and the launch of the Runes Protocol.
The Runic Protocol, created by Casey Rodmarmor, the creator of Bitcoin Ordinals, is a new way to create fungible tokens on the Bitcoin blockchain. The launch coincided with Bitcoin’s halving, which sent transaction fees to new heights as users attempted to ‘etch’ and mint new tokens onto the network.
According to Rune AlphaAt the time of writing, 1,447 Runes had been ‘etched’ on the Bitcoin network and $16.41 million had been spent in fees.
Will ORDI expand its profits?
A review of ORDI’s key indicators on the 24-hour chart suggested that the price gains could be short-lived as demand for the token remains significantly low. In fact, rThe data from key momentum indicators showed that market participants favored token sell-offs over accumulation. For example, the Relative Strength Index (RSI) had a value of 37.46, while the Money Flow Index (MFI) had a value of 44.36.
During a downtrend at the time of writing, the values of these indicators highlighted that selling pressure was significantly greater than buying activity.
Furthermore, the token’s Elder-Ray Index, which measures bull/bear strength, revealed that bearish sentiment was significant. The indicator has only returned negative values since April 12. When this indicator develops in this way, it indicates that the market is in a downtrend, and there is a possibility that the decline will continue.
Likewise, the points that make up ORDI’s parabolic SAR indicator were pegged above the price. This indicator identifies the potential trend direction and reversals of an asset.
When the points are above the price of an asset, the market is said to be in decline. It indicates that the price of the asset has fallen and may continue to do so.
Source: ORDI/USDT on TradingView
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Shorters take position
On the ORDI futures market, open interest has risen 10% in the past 24 hours. Mint glass facts. At the time of writing, ORDI’s Futures open interest was $211 million.
However, the funding rate on crypto exchanges was negative during the same period. This underlined that while futures market participants have taken trading positions, they have placed bets in favor of ORDI’s price decline.