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ORDI Price Clears 86-Day Resistance – Reclaiming $50 Key for Bullish Confirmation

Last Updated May 31, 2024 2:16 PM
Valdrin Tahiri
Last Updated May 31, 2024 2:16 PM

Key Takeaways

  • ORDI has trended upward since May 1 and has broken out from a descending resistance trend line.
  • The ORDI price increased over 60% since reaching its temporary bottom of $31.10 on May 1.
  • Can ORDI confirm its bullish trend reversal by closing above the $50 horizontal resistance area?

ORDI was one of the biggest gainers in November and December 2023 and started 2024 with a notable upward movement. However, the price has corrected since its all-time high on March 5.

Nevertheless, the price began another increase in May, which led to a breakout from a descending resistance trend line on May 30. This begs the question: Will ORDI maintain its momentum and close above the $50 resistance, or will it face a setback with a rejection?

ORDI Reclaims Support Then Breaks Resistance

The ORDI price history shows a decrease under a descending resistance trend line since the all-time high of $97 on March 5. The decrease led to a low of $31.10 on May 1. This seemingly caused a breakdown below the 0.618 Fibonacci retracement support level at $39.20.

However, ORDI  reversed the trend the same day, beginning an upward movement. After creating two higher lows, ORDI broke out from its descending resistance trend line on May 30.

At the time, the trend line had existed for 86 days.

ORDI Price Breakout
ORDI/USDT Daily Chart | Credit: TradingView

The daily MACD and RSI both support the breakout. The indicators are trending upward, the former is above 0 and the latter is above 50.

However, ORDI still needs to reclaim the $50 area to confirm the bullish trend. This is a critical area that provided support since the start of 2024, and then turned to resistance once ORDI broke down on April 16.

ORDI Price Prediction: Will $50 Area Present an Obstacle?

The daily time frame wave count shows that ORDI has completed an A-B-C correction (white) since the yearly high. Waves A:C had a nearly exactly 1:1 ratio, increasing the likelihood this is the correct count.

The sub-wave count is in black, showing a completed five-wave decrease in wave C (white). So, the wave count aligns with the price action and indicator readings. It implies ORDI has completed its correction and started a new upward trend.

ORDI Wave Count
ORDI/USDT Daily Chart | Credit: TradingView

If this is the case, ORDI started a new five-wave increase on May 1. A breakout above the $50 resistance will confirm ORDI is in wave three of this increase. Then, there is an important resistance at $71.55, at the 0.618 Fibonacci retracement resistance level.

The reaction to this area will determine if the increase is merely a relief rally, or if it is a bullish trend reversal that will take the ORDI price to a new all-time high.

Conversely, falling below the wave one high of $42 (red) will invalidate the count. If that happens, ORDI can fall to the May lows at $31.

ORDI Likely to Break $50 but Long-Term Trend Unclear

The ORDI price has begun its bullish reversal on May 1 and will likely break out above the $50 horizontal resistance area. While the price is expected to reach $71.55, the reaction once it gets there will help determine the future trend’s direction.

A breakout above $71.55 will imply the trend is bullish and the price will reach a new all-time high. On the other hand, a rejection could mean the increase is just a relief rally, eventually leading to a retest of the $50 level.

Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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