Journalist
Posted:
- ORDI has formed a range, with the $50 level within it being significant.
- Despite last week’s losses, sales volume was not high.
Ordinals [ORDI] has made an extraordinary flight in recent months. It traded at $2.82 in September, but shot up to $69.76 in the first week of December.
This represented a gain of 2370%, measured from the September lows to the highs. Over the past ten days, the price has retreated to retest the $44 level as support. In addition, it formed a reach.
The range and retracement levels provided solid support
Source: ORDI/USDT on TradingView
This range (white) extended from $44.15 to $66.9, where ORDI again faced strong resistance on December 14. Moreover, the mid-price of $55.52 has served as reliable resistance during this period.
It has been tested several times and converted back to resistance after the losses of the past few days. The RSI also fell below neutral 50 to reflect the bearish momentum present.
However, the OBV has continued to float without showing much trend since December 14.
Based on the OBV, we can say that selling pressure was relatively weak and traders could wait for a buying opportunity. A retest of the $44 lows could provide that. It also coincided with the 50% Fibonacci retracement level.
Further south, $38 and $29.5 would also act as support if ORDI prices fall deeper.
The Open Interest chart indicated weak bearish sentiment
Source: Coinalyse
Continuing the upward trend in early December, Open Interest also rose steadily and noticeably higher. It peaked at $320 million on December 6 before falling prices forced speculators to retreat.
A similar story has played out on the OI map this past week. This reflected the short-term bearish sentiment of recent days.
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Not only the OI but also the spot CVD has been on a downward trend since December 14, showing that selling pressure has been dominant in the spot markets. This helped explain falling prices and was a trend that has not yet stopped.
If things start to turn around when ORDI prices hit $44, it would be a sign that buyers are regaining control.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.