ORDI Price Finally Moves Above $50 Resistance Level – Can it Reach $100?
ORDI Moves Above $50 - What's Next? | Credit: Derek Fenech
Key Takeaways
- The ORDI price has broken out from a 90-day resistance trend line and the $50 horizontal resistance.
- While the price has increased 90% since its May low, it still trades 40% below its all-time high price.
- Has ORDI completed its correction, or is the ongoing increase just a relief rally before new lows?
ORDI was one of the standout gainers in November and December 2023, carrying that momentum into the start of 2024. Nonetheless, the ORDI price corrected after reaching an all-time high slightly below $100 on March 5.
In May, the price began to increase once more, breaking out from a descending resistance trend line and a horizontal resistance at $50. This leads to the question: Has ORDI started a new upward movement that will take it beyond $100, or is the increase simply a bounce in response to the previous drop?
ORDI Finally Moves Above $50
The daily time frame price action shows the ORDI price has fallen since its all-time high of $96.95 on March 5. The decrease culminated with a low of $31 on May 1, a decline of 68% since the all-time high.
The ORDI price started a gradual increase afterward which accelerated in the end of May. On June 4, the price broke out from a descending resistance trend line and the $50 horizontal resistance area.
The breakout was crucial for numerous reasons. Firstly, the resistance trend line had existed for 90 days and traced the decline since the all-time high.
Secondly, the $50 horizontal area has at times provided both support and resistance since December 2023.
Finally, the upward movement caused the MACD to increase above 0 and the RSI to increase above 50. These are all considered signs of a bullish trend. Notably, the previous time the RSI and MACD both crossed above 50 and 0, respectively was in February 2024 (white) and preceded the increase toward the all-time high.
The 0.5 Fibonacci retracement level creates the next resistance at $64. The ORDI price reached it today on June 7, suffering a small rejection.
Has the ORDI Price Started a Bullish Trend Reversal?
The wave count for the price of ORDI supports the bullish hypothesis. The count shows a completed A-B-C corrective structure since the all-time high. In it, waves A:C had almost a 1:1 ratio, the most common in these corrections.
Moreover, the ensuing increase resembles an impulsive upward movement. This is because the ORDI price broke out from its ascending parallel channel, confirming the increase is not part of a correction. The sub-wave count is in black.
Another sign pointing to a completed correction is its length. If the correction ended on May 1, it will have been nearly half as long as the preceding upward movement, common in price movements. Conversely, if the correction is not over yet, it will almost assuredly become longer than the increase that led to it.
If the ORDI price continues to follow the count, it can complete the third sub-wave at the 0.5 Fibonacci retracement resistance level at $63.78. Then, the entire five-wave increase can end at the 0.618 Fibonacci retracement resistance level at $71.55.
While it is probable the increase is the beginning of a new bullish trend reversal, the reaction once the ORDI price gets there can help confirm if this is indeed the case.
More precisely, breaking through the level will confirm the trend is bullish, while a small rejection followed by a higher low will also support this hypothesis. On the other hand, a significant rejection that takes the price back to $60 will put the bullish hypothesis at risk.
ORDI Shows Signs of a Completed Correction
ORDI showed tremendous strength by moving above both a horizontal and diagonal resistance level. The shape of the upward movement combined with the length of the previous decrease both suggest the correction is over.
If this is the case, ORDI will gradually increase toward at least $71.55 and possibly reach a new all-time high. Since the current all-time high is at $97, reaching a new one will almost definitely take the ORDI price above $100 for the first time.
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