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- 1 Ordinals on polygon has been observing a strong traction as compared to the other platforms.
- 2 ORDI price has observed a decline of 11% in the intraday session with a correlation of 0.8 with BTC.
Ordinals are a way to create NFT on the Bitcoin blockchain without having to move on the other side chain or somewhere else. It allows individual SATs in the Bitcoin blockchain to be attached with the extra data and get transacted. It was introduced on the Bitcoin Mainnet in Jan 2023 by Casey Rodarmo.
Source: Ordinals Block By Ordinals.com
The protocol also has a Ordinals wallet which allows users to view, store or buy and sell their Bitcoin ordinals. Initially one could not differentiate between the individual Satoshi but the Rodarmor changed it by taking the advantage of the Segwit and Taproot upgrade. One of the most popular BRC-20 token ORDI has been created with the Ordinals protocol. Let’s have a look towards the onchain analytics of Ordinals and ORDI
The Growth Of Ordinals And Concentration Of ORDI
Bitcoin ordinals is one of the first NFT from the Taproot Wizard collection. The NFT was minted with the collaboration between UDI and Luxor mining pool. The advent of Bitcoin ordinals has also created some controversy in between the Bitcoin Community. The supporters of Ordinals says that it will attract the developers around it and make Bitcoin more sustainable. While the critics argue that it is the waste of the Bitcoin sacred resources.
Source: Dune
Ordinals have observed a decline in the daily inscriptions and has reached near the value of 20142.Meanwhile the daily fees of the ordinals has also taken a hit in the last few weeks. The text and plain inscriptions still contribute to 45% of the total inscription types of the protocol.
Source: BRC 20 token transactions
In the realm of BRC 20 tokens the overall transaction has seen a significant decline including ordinals. The number of transactions of ORDI has reached 100 from the highs of 5000 daily transactions. The overall supply of the ORDI token is also concentrated with the few. Let’s have a look towards the price action of ORDI
Will the Declining Correlation of BTC and ORDI Have a Negative Impact?
Ritika_TCR on TradingView.com
Ordinals has a market cap of $774 Million and is ranked 100th in the CMC. ORDI token price has observed a surge of 60% in the intraday session. It is trading near the value of $36.8 with a slight decline in the past 24 hours.
ORDI is currently forming strong bearish candles on the daily chart. It is trading below the 50 and 200-day EMAs with a negative crossover in the past. Meanwhile, the correlation of the BTC and ORDI has plunged to 0.8 from the high of 0.97. The token price upside trend can see a halt near the value of $40. Meanwhile, the support price can be seen near $25.
The RSI of ORDI is at 41 with a strong negative slope. The overall sentiment of the RSI and MACD is bearish.
Conclusion
Ordinals observed an impressive growth since its inception. The overall inscription has declined but it may bring users to Bitcoin. ORDI token price is currently seeing a downside momentum in price but can observe a new high in the future as per the analysts.