ORDI’s 30% hike in 7 days – Is there a reason behind its recent rally?

• ORDI’s price rose by 30% over the past week
• Bullish bias from its holders was strong across ORDI’s market

Cryptocurrency token ORDI, closely linked to the Bitcoin Ordinals protocol, recorded a double-digit price rally over the last seven days. This surge came amid an improvement in general market sentiment over that period, despite the market’s recent correction. 

At press time, the altcoin was valued at $59.46 after hiking by 30% in just 7 days. In fact, according to Santiment, ORDI is now trading at its highest level since 12 April. 

Source: Santiment

Market sentiment is significantly bullish

Apart from the general market’s growth over the past week, ORDI’s price surge has also been due to the significantly bullish bias that it enjoys from its holders. According to Santiment, ORDI’s weighted sentiment climbed to a three-month high of 3.49 on 5 June. 

At press time, the value of this metric was 2.36. A high positive value like this suggests that a majority of social media posts and discussions about ORDI have been bullish. It suggested that ORDI holders expect the altcoin’s value to rise even more. 

Source: Santiment

Readings from its Futures market activity confirmed this. ORDI’s funding rate across cryptocurrency exchanges has been positive since 1 May.

Funding rates are used in perpetual Futures contracts to ensure that the contract price stays close to the spot price. 

When an asset’s Futures funding rate is positive, it suggests a strong demand for long positions. It is considered a bullish signal and often a precursor to an asset’s sustained price growth. 

At the time of writing, the token’s funding rate was 0.0023%. 

Source: Coinglass

Likewise, ORDI’s Futures open interest has been on an uptrend too. With a value of $294 million at press time, the token’s open interest sat at its highest level since 13 April, according to Coinglass. 

ORDI wants more gains

ORDI’s set-up on the 1-day chart hinted at the possibility of a further rally in its price in the short term. Its key indicators confirmed the strength of its prevailing bullish trend too. 

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For example, its Elder-Ray Index returned a positive value of 15.95 at press time. This indicator measures the relationship between the strength of an asset’s buyers and sellers in the market. When its value is positive, it means that bull power is dominant in the market. 

Source: ORDI/USDT on TradingView

Signaling demand for the altcoin, ORDI’s MACD line (blue) rested above its signal (orange) and zero lines at press time. This bullish signal suggested that the token’s short-term average was above its long-term average.