Ordinals continue their upswing by jumping 50%

After the craze of the NFTs in the late 2010s, the Ordinals entered the market in 2023, ready to change the crypto ecosystem forever. Those looking for where to buy Bitcoin have been primarily interested in the new addition, believing that it can help rejuvenate the environment and make Bitcoin fall in line with the latest additions and extra features provided by the altcoins, all while retaining its stability and safety compared to its peers.

However, the general environment remains relatively unsteady, and there are bound to be further challenges intervening along the way. If you’re an investor and you’re looking to improve your rate of returns, all while ensuring your holdings are safe, here are some of the things you should be aware of.

50% 

ORDI, the token linked to the Ordinals protocol, jumped by 505 on November 7th after emerging under the “seed” tag on Binance. Since it is a relatively new asset, it poses a higher risk and can be subjected to higher volatility. The exchange wants all users to remain cautious when trending and do their research to fully grasp the whole scope of the project and what it entails before delving into trading.

The seed tag refers to new and innovative projects that appear on blockchains and might come with increased risks and volatility compared to regular crypto assets. From the $7 range, ORDI skyrocketed to $11 in twenty-four hours, an impressive feat for a newbie token. During the same day, trading volumes accounted for almost $100 million. Although they’ve been around for a while now, there’s still a sense of novelty that comes with the Ordinals, and the hype surrounding them has encouraged the creation and development of numerous digital artwork collections.

Crypto funds 

Over the past few months, the crypto environment has been dealing with the issue of excessive outflows. Altcoins, in particular, have been hit quite hard, but it seems now that things are set to change sooner rather than later. All investment vehicles dealing with cryptocurrencies recorded net inflows of $260 million during the first week of November, showing that it is now a good time to be a trader.

The current run is almost an exact match for the one from July 2023, when the amount of inflows reached its highest number since the infamous bull run of 2021. After the upswing ended in December of that year, the market entered a period of relative stagnation, from which it only recovered towards the middle of 2023. However, it seems now that the next year is set to be a beneficial one for the digital finance market and that investors aren’t unrealistic to expect returns.

Bullish tendency 

Although the market hasn’t yet entered its next bullish run, most investors and analysts are convinced that the change is imminent and that it is only a matter of time until prices return to their former glory. Even though many were waiting for the crypto spring in 2023 following the losses of 2022, it seems that the results are more likely to appear during this year.

Many projects have been growing and developing recently, but many are still debating whether the protocol that will be at the forefront of the next bullish run will be based on layer-2 or not. Is L1 doing anything to remain competitive, or will it ultimately be overshadowed?

A new report shows that scaling solutions are a much-needed addition that can solve the issues of L1. The most popular blockchains in the world, the ones hosting Bitcoin and Ethereum, are both layer-1 protocols and are known to operate as mainnets. However, they also get the added functionality of layer-2 solutions. There’s also layer-0, which lets developers combine the elements of the previous two while at the same time retaining the characteristics of an original ecosystem to support interoperability.

$34K 

The Bitcoin bulls have had a challenging 2023 as they attempted to support many different levels and prevent the coins from losing their foothold and returning to their previous bear-run levels. Now, bitcoin is setting up to go above $35K again, according to analysts who have analyzed the latest movements in the ecosystem. Recent data shows that the Bitcoin price support has been holding well in the aftermath of the end of Wall Street trading.

$34K managed to pass the short-term BTC price floor with flying colors after going back to intraday lows momentarily. Nonetheless, it has remained a favorite for the traders, many of whom are convinced that the $35,000 level is the only step forward. Most analysts agree that there are three fundamental levels that investors should be aware of. Two of them are in the $34K area, at $34,314 and $34,714, and the next stands at $35,119. Together, they form the low, midrange and high levels, respectively.

Most investors are looking to see if they can hold the levels around the midrange in order to determine if there’s room for continuation. Strong volume levels are lending a helping hand in this area as well, and there’s also a pointed lack of desire within the market to sell at the current levels.

Downsides 

CME futures gaps have been closing around the bitcoin spot price, but there’s still a considerable exception around the $2,000 level. Part of the bearish tendency calls for a return to the previous levels over the upcoming months. According to research, the 200-period EMA, the exponential moving average, has also been acting as a primary support line on 1-hour timeframes.

If the $34,100 level is lost, investors must start looking for a hedge that acts against the long positions. However, the values would ideally remain above $33K, and most investors are holding on to the idea that the level can be maintained in the long term.

The bottom line 

No matter how much time passes, Bitcoin remains the favorite of crypto investors from all over the world. Most are convinced of its ability to recover and continue to act as a store of value and a way to amass revenue. New additions, such as the birth of Ordinals, have ushered in a brand-new era for Bitcoin as well, making investors excited to trade BTC, especially after the low episodes of 2022.

Nonetheless, the market remains relatively unstable, so it’s crucial to stay cautious at all times when buying, selling or trading in order to protect your assets.