- ORDI’s price fell by 15% in the last 24 hours.
- This has been due to whale distribution following the concerns raised that BRC20 tokens spam the Bitcoin network.
This comes amid significant whale distribution following the concerns Bitcoin Core developer Luke Dashjr raised about the use of inscriptions on the Bitcoin [BTC] blockchain.
In a post made on X on 6th December, Dashjr noted that Ordinals and other BRC20 tokens are exploiting a vulnerability in Bitcoin Core to bypass transaction data size limits, leading to increased spam on the network.
PSA: “Inscriptions” are exploiting a vulnerability in #Bitcoin Core to spam the blockchain. Bitcoin Core has, since 2013, allowed users to set a limit on the size of extra data in transactions they relay or mine (`-datacarriersize`). By obfuscating their data as program code,…
— Luke Dashjr (@LukeDashjr) December 6, 2023
AMBCrypto previously reported that the recent increase in activity around BRC20 tokens led to a surge in the number of pending transactions that clogged the network’s meme pool.
This resulted in longer waiting periods for transactions to be confirmed and higher transaction fees.
ORDI bears the brunt, but sentiment remains bullish
At press time, ORDI exchanged hands at $47.94. Its price has seen a 15% decline in the last 24 hours, while trading volume has decreased by 51% within the same period.
On-chain sleuth Lookonchain found that whale sell-offs after Dashjr’s post resulted in the price drop.
Affected by the tweets of Bitcoin Core developer Luke Dashjr, the price of $ORDI has fluctuated greatly in the past 2 days.
Did whales sell or continue to accumulate $ORDI?
Here is a thread. pic.twitter.com/zDKuliirIv
— Lookonchain (@lookonchain) December 7, 2023
However, despite the decline in value within the last 24 hours, ORDI traded at a 127% price high in the last week. According to data from CoinMarketCap, the token ranked as the asset the second-highest gains in the last seven days.
On the daily chart, bulls were yet to relinquish total control to the bears. A look at the ORDI’s Moving Average Convergence/Divergence indicator (MACD) showed that the MACD line remained above the trend line.
This is typically considered a bullish signal as it suggests a potential for further price gains.
Further, key momentum indicators were positioned above their respective center lines at press time. This indicated that ORDI accumulation outweighed sell-offs in the general market.
The token’s Relative Strength Index (RSI) was 67.64, while its Chaikin Money Flow (CMF) returned a value of 0.14.
Read Ordi’s [ORDI] Price Prediction 2023-24
However, while it has been established that most traders maintain a bullish outlook, it is also imperative to point out that there has been a decline in ORDI’s open interest since Dashjr’s post.
Data from Coinglass revealed that this has dropped by 17% since the post was published on X.