ORDI price soars as futures open interest surge and inscription fees decline

In recent weeks, Ordinals (ORDI), a BRC-20 token, has captured the attention of the cryptocurrency market with its remarkable performance and promising future prospects.

ORDI has experienced a substantial price surge of 27% over the past week, breaking through the critical $50 resistance level and solidifying its position as a dominant altcoin.

ORDI Futures Open Interest sees a notable surge

Trading at approximately $57.38 at press time, ORDI has seen significant gains, rising by 2.73% 17% in the last 24 hours and by 21% over the past week.

This rapid ascent is accompanied by a notable surge in Exchanges ORDI Futures Open Interest (OI), which has grown by about $120 million in the past three day to move above $300 million, highlighting the increasing market participation and interest in ORDI.

Source: Coinglass

Market analysts have a bullish outlook on ORDI, predicting it could try retesting $60 in the course of the week.

Technical analysis shows the BRC-20 token trading above the 50 and 100-day Exponential Moving Averages (EMAs), which serve as strong support levels. In addition, the Relative Strength Index (RSI) stands near 70, with a positive slope back from the overbought region, indicating continued bullish momentum.

Source: Tradingview

Overall activity on the Ordinals marketplace has declined

ORDI leverages the security and decentralization of the Bitcoin blockchain through its BRC-20 protocol called Ordinals protocol.

The Ordinals protocol writes information (text and pictures in the form of NFT and token) to each Satoshi (the smallest unit of Bitcoin).

Despite the recent bullish trend, the overall activity on the Ordinals marketplace has declined from March to May 2024.

Notably, text inscriptions dominate over images and videos, with a decline in inscription fees reported by Dune Analytics.

However, Ordinals Wallet and Magic Eden lead in transaction volumes, with unique wallet users reaching a new high of approximately 15,525.

ORDI’s future outlook

The bullish sentiment surrounding ORDI is underpinned by its strong market performance and technical indicators.

As ORDI continues to form strong bullish candles on the daily chart, it is poised to test higher resistance levels, potentially reaching $70 in the near term.

The correlation between ORDI and Bitcoin has slightly increased, reflecting a correlation coefficient of approximately 0.57.

Despite a decline in overall user activity and transaction volumes, the growth in unique users of Ordinals wallets signals a resilient and growing ecosystem.

With a current market cap of $1.18 billion, ORDI remains a prominent player in the cryptocurrency market, attracting investors and enthusiasts alike.

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