The cryptocurrency landscape is witnessing yet another intriguing turn of events, with Ordinals (ORDI), a prominent token in the market, experiencing a notable pullback just 13 hours after reaching an all-time high (ATH).
This recent fluctuation, marked by a nearly 40% drop, has sparked speculation and analysis within the investment community. Investors and market analysts are keenly focused on ORDI’s next moves: will it rally to test new record highs, or has it embarked on a nascent downtrend?
This post aims to delve into the dynamics surrounding ORDI’s recent performance, examining the potential factors and market sentiments that could influence its trajectory towards retesting a new ATH or continuing its downward slide.
Since it was released in the market, the ORDI token has been in a downtrend. It started at around $9 in June and slowly decreased to just below $3 on September 11. This was its lowest point and the start of the next bull phase, leading the price to its all-time high of $66 yesterday, November 5.
We saw an impulsive move of 2240%, and now, with a decrease of nearly 40% since yesterday’s high, some early signs of weakness. The RSI on the daily chart pointed out a possible reversal yesterday, as it entered the overbought zone at 86%, but it also did so on November 7 before the price spiked up again.
Zooming into the hourly chart, we see that the last uptrend can be labeled as a five-wave impulse, implying that it has already ended. And with a strong descending move after, it adds to the assumption.
If this is true, the whole uptrend ended with the price reaching wave 5 of the higher degree count. Now, it is likely headed for its first larger correction that is going to push the price significantly down.
However, considering the decrease we saw yesterday, in the short term, we could expect to see a bounce to potentially $56 as the first lower high. Only after this first lower high can we be more certain that the price started its larger descending move.
If it continues moving above $56, the likelihood of another high would be higher, but the upside potential would be limited even in that scenario. After it ends, we would be looking for the start of the larger descending move that is now anticipated.
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.