According to CoinMarketCap, the cryptocurrency token ORDI, which is closely related to the Bitcoin Ordinals protocol, has experienced a double-digit price increase within the past day. The Runes Protocol debut and the conclusion of Bitcoin's fourth halving event on April 20 early trading hours coincided with the token's price increase.
Casey Rodmarmor, the creator of Bitcoin Ordinals, developed the Runes protocol, which offers a fresh approach to producing fungible tokens on the Bitcoin blockchain. When it was first released, the Bitcoin network was about to halve, which caused transaction costs to soar as users strove to "etch" and mint new tokens.
As of the time of publication, Rune Alpha reported that 1447 Runes have been "etched" on the Bitcoin network, with fees totaling $16.41 million.
Will ORDI continue to rise?
An analysis of the token's primary indicators on the 24-hour chart indicated that the price gains might not last long because there is still a lot of low demand for the token. In fact, readings from the token's primary momentum indicators showed that market participants preferred token sell-offs over accumulation; the token's Relative Strength Index (RSI) showed a reading of 37.46, and its Money Flow Index (MFI) showed a reading of 44.36.
These indicators, which were on a downward trend at the time of writing, showed that buying activity was significantly outpaced by selling pressure. Moreover, the token's Elder-Ray Index, which gauges its bull/bear power, indicated a significant amount of bearish sentiment and has only returned negative values since April 12.
Similarly, the Parabolic SAR indicator of ORDI had its dots placed above its price. This indicator shows the possible trend direction and reversals of an asset.
The market is said to be declining when its dots are higher than the price of an asset. It suggests that the asset's price has been declining and might do so in the future.
Shorters adopt a stance
According to Coinglass statistics, open interest in ORDI's Futures market increased by 10% over the previous day. ORDI's Futures open interest was $211 million at the time of publication.
Nevertheless, within that same time frame, its financing rate was negative for all cryptocurrency exchanges. This demonstrated that even though traders have opened positions on the futures market, they have gambled on the decline in price of ORDI.
April 2024, Cryptoniteuae