The MOVE token surged 12% in the last 24 hours, making it the top gainer in the crypto market. This rally follows a $2 million purchase by the Trump-backed DeFi platform, World Liberty Financial. However, on-chain data suggests the gains might not last.
MOVE Token Spikes After Major Buy-In
On Tuesday, World Liberty Financial acquired $2 million worth of MOVE tokens, according to Arkham Intelligence. The purchase happened in multiple batches during the U.S. morning hours, with the first transaction settling at 14:22 UTC.
Shortly after, at 14:48 UTC, a well-known crypto account, DB, revealed that Movement, the blockchain behind MOVE, was in talks with Elon Musk’s Department of Government Efficiency (D.O.G.E). However, Movement’s co-founder, Rushi Manche, denied any official discussions with D.O.G.E.
Is MOVE’s Rally Sustainable?
Despite the price surge, data suggests MOVE’s rally may not last. The token’s funding rate has dropped to -0.084%, the lowest since January 7, indicating a rise in short positions.
In futures trading, a negative funding rate means short traders are paying long traders, signaling bearish market sentiment. This suggests that MOVE’s rally is fueled by short squeezes rather than organic demand.
Additionally, MOVE has seen continuous outflows despite its rising price. Coinglass data shows that the altcoin has recorded four straight days of outflows, totaling $19 million. On Wednesday alone, $440,470 left the MOVE spot markets, indicating that traders are taking profits.
MOVE Price Prediction: Will Profit-Taking Drag It Down?
If profit-taking continues, MOVE could drop to $0.71. If that support fails, it might fall further to $0.55.
On the other hand, if demand increases, MOVE could break past $0.87 and aim for $1.08.
For now, traders should watch out for volatility as the market decides MOVE’s next direction.
