Bitcoin Ordinal Inscription Tokens ORDI, SATS: Crashing Reasons

In January, several digital assets in the cryptocurrency market experienced a significant decline, particularly inscription tokens like ORDI and SATS. The drop in these unique tokens can be attributed to various factors, including Bitcoin’s recent price fluctuations. The decreasing demand for inscriptions is a notable reason behind the decline in the price of ORDI and SATS, with both tokens experiencing a decrease of around 34.50% and 50% respectively in 2024 so far. The sell-off sentiment in the crypto market, led by Bitcoin, has contributed to this downward trend. The correlation coefficient between ORDI and BTC has remained positive, emphasizing their close alignment.

Apart from market trends, technical conditions have played a role in the price drops of ORDI and SATS. A bearish divergence pattern was observed in the ORDI/USDT daily chart, where the price formed higher highs while the relative strength index (RSI) made lower highs. This pattern often precedes a price correction, and as predicted, ORDI experienced a 45% pullback. A similar bearish divergence was seen in SATS, resulting in a price drop of over 60%. Traders closely monitored these bearish divergence signals as they indicated a potential trend reversal or a pause in the ongoing uptrend.

Taking a technical standpoint, ORDI’s price is expected to decline further in the coming days or weeks. It has undergone an ascending triangle reversal breakdown, indicating a reversal of the previous trend. The breakdown target for ORDI is projected to be around $38.50 by February. Notably, this target aligns with the 0.618 Fibonacci retracement line. SATS has reached its support level of $0.00000036, with its RSI indicating oversold conditions. These indicators suggest a potential rebound towards 0.00000043 by February. If the support level is broken, SATS may experience a price crash towards its 0.786 Fib line at $0.0000029.