ORDI leaves short traders underwater as its price explodes

• Following its Binance listing, ORDI climbed by over 80% in the last 24 hours.
• Short traders recorded heavy liquidations within the same period.

Cryptocurrency token Ordi [ORDI], closely linked to the Bitcoin [BTC] Ordinals protocol, experienced a staggering 85% growth within the last 24 hours, according to data from CoinMarketCap.

Source: CoinMarketCap

This significant price increase is attributed to ORDI’s recent listing on the prominent crypto exchange Binance.

Binance categorized ORDI under the “seed” tag, signaling its potential for growth and development.

#Binance will list Ordinals $ORDI with Seed Tag applied.

➡️ https://t.co/CjMKeZpF92 pic.twitter.com/9pUEuNQ7ft

— Binance (@binance) November 7, 2023

The increased activity around the altcoin and inscriptions generally on the Bitcoin network in the last 24 hours caused average transaction fees to climb to their highest in almost six months on the blockchain. 

As of the 7th of November, data retrieved from BitInfoCharts showed that the average BTC transaction fee was $6.841. 

The last time the transaction fee on the Bitcoin network was this high was in May. It was when the competition for block space on the network was at its highest due to hype and activity around Bitcoin inscriptions

Source: BitInfoCharts

ORDI in the last 24 hours

At press time, the 120th-ranked crypto asset exchanged hands at $13.65, its highest value since 23rd May.

Although ORDI maintained an uptrend before the Binance listing was announced, the increased demand for the altcoin in the last 24 hours pushed its key momentum indicators to all-time highs.

For example, at press time, the token’s Relative Strength Index (RSI) was 92.17. Likewise, its Money Flow Index (MFI) was spotted at 88.77. 

While these values depicted the high volume of ORDI accumulation within the last 24 hours, they also signaled that the asset was overbought.

These extreme values suggested that the asset experienced a significant price increase over a short period. This led to buying pressure that may not be sustainable.

Also, ORDI’s price traded above the upper band of its Bollinger Bands indicator as of this writing. When an asset trades in this manner, it means that such an asset has witnessed a significant upward price movement in a relatively short period of time. 

It is often taken as a sign that the asset’s price is due for a retracement. This is because buyer exhaustion is expected at that level. 

Source: ORDI/USDT on TradingView

Short traders get the short end of the stick

The sudden rally in ORDI’s value during the intraday trading session on the 7th of November resulted in the liquidation of several short positions.

According to information sourced from Coinglass, short liquidations on that day totaled $4.27 million, marking a daily record. 

Source: Coinglass