Key Points
- Cryptocurrency token ORDI records double-digit price rally following Bitcoin’s fourth halving event.
- Despite the price hike, key indicators suggest the gains may be short-lived due to low demand.
ORDI, a cryptocurrency token closely associated with the Bitcoin Ordinals protocol, has witnessed a significant price surge within the last 24 hours, as per CoinMarketCap. This increase in price occurred in the wake of the fourth halving event of Bitcoin on 20 April and the introduction of the Runes Protocol.
The Runes Protocol and ORDI’s Performance
The Runes Protocol, a novel method to create fungible tokens on the Bitcoin blockchain, was developed by Casey Rodmarmor, the originator of Bitcoin Ordinals. The launch of this protocol coincided with the Bitcoin halving event, leading to a spike in transaction fees as users attempted to mint new tokens.
Despite the price surge, an analysis of ORDI’s key indicators suggests that the rally may be temporary due to the low demand for the token. The readings from its key momentum indicators indicate a preference for token sell-offs over accumulation. For instance, its Relative Strength Index (RSI) and Money Flow Index (MFI) readings were 37.46 and 44.36 respectively.
Predicting ORDI’s Future
At the time of writing, these indicators were on a downtrend, implying that selling pressure significantly exceeded buying activity. The Elder-Ray Index of ORDI, which calculates its bull/bear power, showed a high bearish sentiment. The negative values this indicator has been returning since 12 April suggest the market is on a downturn, with the likelihood of the decline continuing.
The Parabolic SAR indicator of ORDI, which identifies potential trend directions and reversals, had its dots positioned above the token’s price. This positioning indicates a declining market and suggests that the token’s price may continue to fall.
In the futures market of ORDI, its open interest rose by 10% within the last 24 hours, according to Coinglass data. However, the funding rate across crypto-exchanges was negative during the same period, indicating that while futures market participants have taken up trading positions, they have bet on a fall in ORDI’s price.
