Movement [MOVE] crypto could have found its bottom after a year of decline. Movement transitioned from an Ethereum Layer 2 (L2) blockchain to a full standalone L1.
In the past 24 hours, MOVE spiked by more than 12%, as per CoinMarketCap data, extending its rally for the second consecutive day. The daily trading volume doubled, exceeding the $84 million mark.
Why is MOVE crypto up today?
Beyond its technical breakout, fundamentals and network activity also drove the rally for MOVE.
On fundamentals, Movement has partnered with more than 10 DeFi applications, which now funnel funds into the ecosystem through fees. This revenue is used in MOVE’s buyback program, which reduces the amount of circulating supply in the market.
For context, the main alliance in the ecosystem was the LayerBank partnership. Its ULAB token launch on the MOVE network added about $2.30 million, fueling more DeFi integration.
On the activity part, the number of Active Monthly Addresses rose by 17%, reaching 21.4K as of press time. This reflected that the network had become busy since the start of December, though prices stayed low.
Source: Token Terminal
The total Number of Accounts created almost hit 570,000, while deployed contracts were 28,837 from 4,710 deployers, as per Movement Explorer data.
Additionally, the Transaction Count grew from 50.9K to 84.9K in two days. This brought the monthly sum to 2.8 million transactions, affirming the shift in activity.
All these on-chain metrics supported the growth in price over the past two days. Is the technical setup good enough to say MOVE will sustain the trend?
Will the altcoin maintain momentum?
On the hourly charts, MOVE broke above the descending trendline resistance that had held price for over two months since the October 10th crash.
Still, the altcoin had been in a downtrend since its post-launch rally, which ended on December 25th, 2024, when the MOVE crypto price slightly surpassed the $1.50 mark.
After this breakout, the MOVE price rallied more than 51% but was instantly rejected. The price fell and seemed to be stabilizing around $0.0418. Holding above this level and breaching $0.0600 for a new higher high would mean a continued uptrend. Otherwise, sellers stay in control.
However, in this timeframe, sellers showed momentum, as seen in the MACD bars. Furthermore, the Cumulative Volume Delta (CVD) was negative, at $8.35 million, meaning selling was the dominant activity after the short rally.
Source: TradingView
While the altcoin was bullish on the day, sellers were not ready to relinquish dominance. MOVE was trading in a bear market, but bulls had thrown the first hints of potential reversal after a year of decline.
The reversal stays alive, though a market shift on bigger timeframes was needed for confirmation.
Final Thoughts
- MOVE rallies 12%, outperforming the entire market amid a rise in partnerships, buyback programs, and network activity.
- Movement crypto price was stabilizing above the breakout zone, though sellers did not appear to be giving up control.
Source: https://ambcrypto.com/why-movement-move-crypto-is-up-l1-shift-buybacks-more/
