- The price of ORDI tapped a new high after Bitcoin surpassed $41,000.
- ORDI was overbought but a retracement may be invalidated by the support at $31.83.
- If BTC continues to increase, ORDI might also follow while ignoring the overheated condition.
ORDI (ORDI), the BRC-20 cryptocurrency related to Bitcoin Ordinals increased by 30.75% in the last 24 hours. On November 3, ORDI’s price was 32.35. But after the surge, the token value changed hands at $42.27.
Like BTC, Like ORDI
One of the major reasons for the ORDI price increase was its connection to Bitcoin (BTC). It is noteworthy to mention that BTC’s price reached a new yearly high during the same period ORDI crossed $42.
As mentioned earlier, ORDI is a fungible token operating on the Bitcoin blockchain via the Ordinals protocol. This functionality allows inscriptions of texts, images, audio, and the like on the Bitcoin network.
Also, out of the numerous BRC-20 tokens, ORDI is the one with the highest market cap. It also has the highest market cap in the category. So, it is not surprising that its correction with Bitcoin is stronger than the others.
At the time of writing, the ORD/USD 4-hour chart mirrors a situation with bulls fully in control. The bullish structure of the token showed that demand for ORDI has been incredibly high. This buying momentum also impacted the Relative Strength Index (RSI) to an unexpected reading.
Not the Season to Be Bearish
At press time, the RSI was 93.84, indicating that there has been a lot of buying pressure in ORDI’s favor. At the same time, this RSI reading is considered overbought. So, there is a possibility that ORDI’s price retraces.
If the price falls, it is unlikely to drop below $31.83. This is because there was a lot of demand in this area and bulls have formed a support for ORDI there. Meanwhile, if selling pressure is intense and bears break the $31.83 support, there is another one at $23.61 ready to come to the rescue of bulls.
Furthermore, traders also need to watch out for BTC’s movement before taking a stand on ORDI’s likely direction. Should Bitcoin head in the $42,000 direction, ORDI’s overbought condition might not matter, and its price may hit another high.
Indications from the Directional Movement Index (DMI) also revealed that buyers were dictating the ORDI movement. As of this writing, the +DMI (green) was 57.12 while the -DMI (red) was 2.11.
A look at the Average Directional Index (ADX) also supported the ORDI’s uptrend. With the ADX reading at 61.56, it means ORDI’s northward movement was strong. It also means that it would take a lot of selling pressure to make the token nosedive.
As it stands, a significant plunge is unlikely. But this does not imply that ORDI would continue to move upwards without any stop.
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