Ordinals (ORDI) has experienced an extraordinary surge in recent months, with its price soaring from $2.82 in September to $69.76 in the first week of December. This represents a staggering 2370% gain from its lowest to highest levels within this period. However, in the past ten days, ORDI’s price has seen a retracement, testing the $44 support level and forming a price range.
The price range between $44.15 and $66.9 has been established, with ORDI facing strong resistance on December 14. An intermediate resistance zone at $55.52 has also become prominent during this time. Despite multiple tests of the $55.52 level, the price has recently converted it into a solid resistance, coinciding with the RSI falling below the neutral 50 level. Meanwhile, the OBV has continued its fluctuating movement without giving away much since December 14.
Considering the OBV’s behavior, it suggests that selling pressure is relatively weak. Traders might be eyeing a buying opportunity, particularly if the price retests the $44 level, which also aligns with the 50% Fibonacci retracement level. In case of further price drops, the $38 and $29.5 levels could serve as potential support zones for ORDI.
The rise in Open Interest (OI) during the early December rally that pushed prices to their peak, reaching $320 million on December 6, indicates a stable and visible increase. The OI charts over the past week have mirrored this view, reflecting the short-term downward trend to investors. Not only OI but also the spot Cumulative Volume Delta (CVD) has been on a decline since December 14, indicating prevailing selling pressure in spot markets and helping to explain the recent price drop.
If ORDI’s price reaches $44 and bounces back, it could be a strong signal that buyers are regaining control, potentially leading to a reversal of the downward trend.
