MOVE reached a two-month peak following its separation from a harmful market maker, sparking renewed interest from whales.
Movement (MOVE) jumped 32% to reach an intraday high of $0.594 on the afternoon of March 26, Asian time, bringing its market capitalization to $1.36 billion. In addition, its daily trading volume saw an impressive seven-fold increase, hitting approximately $829 million.
The majority of today’s increase can be attributed to the announcement from the Movement Network Foundation that it had recovered roughly $38 million in USDT from a now-banned market maker that previously operated on Binance.
This entity was initially brought in to enhance liquidity for MOVE on the platform by executing buy and sell orders to stabilize the price and facilitate healthy trading. However, the market maker turned rogue, dumping 66 million MOVE tokens shortly after the token was listed on Binance and placing minimal buy orders.
Binance identified this conduct as “market irregularities,” froze the market maker’s profits, and subsequently removed them from its platform.
The Movement Foundation, having cut ties with this firm, has pledged the entire $38 million to a three-month buyback initiative called the Movement Strategic Reserve. Essentially, they will buy MOVE on the open market to alleviate selling pressure and inject more liquidity into the ecosystem.
This announcement of the buyback ignited a wave of whale accumulation.
On March 24, wallets holding between 100 million and 1 billion MOVE possessed around 553 million tokens. As of today, that figure has surged to 953 million, indicating that whales acquired approximately 400 million MOVE within just 48 hours. At the current price, that amounts to over $185 million in tokens.
On-chain metrics are also looking robust. Daily active addresses increased by 265%, and social sentiment has shifted to a positive outlook over the last day.
MOVE price analysis
On the 1-day/USDT price chart, MOVE has broken free from a multi-month falling wedge pattern, which typically signals a bullish reversal and suggests the possibility of a prolonged rally.
The MACD and Super Oscillator lines are both trending upward, confirming that momentum is shifting in favor of the bulls and suggesting further upward movement in the short term.
Additionally, the Money Flow Index is registering at 65, indicating that buying pressure is increasing, with still some room to move before entering overbought conditions.
Given these encouraging signs, MOVE could potentially rally to its psychological resistance level at $0.90, which is currently 65% higher than the existing levels. This has previously served as a significant resistance point for the altcoin. A breakout above this level could propel it toward its yearly high of $1.12.
However, if MOVE drops below the lower trendline of the wedge, this setup may become invalidated, possibly causing the altcoin’s value to drop to $0.37.
Disclaimer: This article does not constitute investment advice. The content provided here is for educational purposes only.