NOIDA (CoinChapter.com) — The Orion Protocol (ORN) price spiked on Feb. 13 to reach a multi-month high before correcting. However, the ORN price rally has put the token in a situation where technical analysis forecasts a sharp correction for the DeFi token.
The liquidity provider has not made any significant announcements or upgrades recently, which suggests that the sudden volatility was likely the result of market manipulation rather than genuine bullish cues.
Orion Protocol Price Risks Immediate Correction
The current technical analysis of the ORN/USD pair indicates a pivotal moment as the price tests the upper boundary of the ascending trend channel, which historically has been a region where significant sell-offs have occurred, leading to retracements towards the lower boundary of the channel.
The Orion token fell nearly 23% before recovering strongly as bulls entered the market to defend the token’s falling prices.
The chart shows ORN price approaching a resistance level within the ascending trendline. Past behavior near this level suggests that the price has struggled to sustain upward momentum, resulting in sharp sell-offs.
The Fibonacci retracement levels further identify potential support and resistance zones. The 0.786 level (at approximately $1.136) may act as immediate support if a pullback occurs, while the 1 level (at $1.31) stands as psychological support.
The recent Orion spike was accompanied by a substantial increase in volume, which may indicate strong buying interest. However, if the volume does not maintain such high levels, it could increase the likelihood of a price correction.
The RSI has crossed the threshold of 70, suggesting a risk of overbought condition that could precede a reversal. If the price breaks above the current resistance with sustained high volume and the RSI remains below overbought levels, it could signal a bullish continuation.
This could invalidate the expected 25% retracement and lead to new highs.
Conversely, if selling pressure increases, evidenced by a high volume drop and a turning RSI, a 25% decline towards the lower boundary of the ascending channel might ensue, following the historical pattern of sharp sell-offs from this price region.
What Is the Orion Protocol?
The Orion Protocol is a decentralized finance (DeFi) platform that aims to aggregate the liquidity from the entire cryptocurrency market into a single decentralized platform.
The platform aims to address key DeFi challenges, such as lack of liquidity and trading pairs, by merging liquidity from centralized (CEX) and decentralized exchanges (DEX).
Moreover, the protocol offers a wide range of services and products, including the Orion Terminal, which allows users to trade across different exchanges without needing to transfer their assets or worry about disparate liquidity pools.
Orion Protocol allows users to access liquidity from different centralized and decentralized exchanges worldwide, facilitating limitless liquidity access and trading opportunities without the limitations of available assets or liquidity pools.
