Journalist
Posted:
- ORDI has formed a range, with the $50 level being significant within it.
- Despite the losses of the past week, the selling volume was not high.
Ordinals [ORDI] has been on an extraordinary run in recent months. It was trading at $2.82 in September but skyrocketed to reach $69.76 in the first week of December.
This represented gains of 2370%, measured from the September low to the highs. In the past ten days, the price has pulled back to retest the $44 level as support. In doing so, it formed a range.
The range and the retracement levels formed a solid support
Source: ORDI/USDT on TradingView
This range (white) extended from $44.15 to $66.9, where ORDI faced stiff resistance once again on the 14th of December. Moreover, the mid-range mark at $55.52 has served as a reliable resistance during this period.
It has been tested multiple times and was converted to resistance once again after the losses of the past few days. The RSI also fell below neutral 50 to reflect the bearish momentum present.
However, the OBV continued to float without exhibiting much of a trend since the 14th of December.
Based on the OBV, we can say that selling pressure was relatively weak and that traders could wait for a buying opportunity. A retest of the range lows at $44 would provide that. It also coincided with the 50% Fibonacci retracement level.
Further south, $38 and $29.5 would also act as support should ORDI prices slump deeper.
The Open Interest chart pointed toward weak bearish sentiment
Source: Coinalyze
During the continuation of the uptrend in early December, the Open Interest also rose steadily and remarkably higher. It reached a high of $320 million on the 6th of December before falling prices forced speculators to withdraw.
Over the past week, a similar story has unfolded on the OI chart. This reflected the short-term bearish sentiment of the past few days.
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Not only the OI but also the spot CVD has been trending lower since the 14th of December, showing that selling pressure had been dominant in the spot markets. This helped explain the falling prices and was a trend that has not yet halted.
If it begins to turn around as ORDI prices reach $44, it would be a sign that buyers are regaining control.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
