65% surge in MOVE value fueled by $32m buyback, signaling whale stockpiling

The value of MOVE reached a two-month high as it severed connections with a harmful market maker, sparking renewed interest from large investors.

Data from crypto.news reveals that Movement (MOVE) increased by 32% to an intraday high of $0.594 on March 26 afternoon in Asia, with its market capitalization at $1.36 billion. Its daily trading volume also surged 7-fold during this period, totaling around $829 million.

The majority of today's gains occurred after the Movement Network Foundation announced that it had reclaimed around $38 million in USDT from a now-prohibited market maker that had been active on Binance.

This entity was initially brought in to supply liquidity for MOVE on the platform by placing buy and sell orders to help stabilize the price and encourage healthy trading. However, the market maker became malevolent and dumped 66 million MOVE tokens shortly after the token's listing on Binance while making almost no buy orders.

Binance identified this behavior as "market irregularities," froze the market maker's profits, and removed them from its platform.

The Movement Foundation, which has cut ties with the firm, has devoted the full $38 million to a three-month buyback program known as the Movement Strategic Reserve. Essentially, they will be purchasing MOVE from the open market to alleviate selling pressure and replenish liquidity within the ecosystem.

The announcement of the buyback initiated a surge in whale accumulation.

On March 24, wallets containing between 100 million and 1 billion MOVE held approximately 553 million tokens. As of today, that number has risen to 953 million, indicating that whales have acquired around 400 million MOVE in just the past 48 hours. At the current price, that amounts to over $185 million in tokens.

On-chain metrics also appear robust. Daily active addresses have increased by 265%, and social sentiment has shifted to positive over the past day.

MOVE Price Analysis

In the 1-day/USDT price chart, MOVE has broken out of a multi-month falling wedge pattern, which usually indicates a bullish reversal and may signal a prolonged rally.

The MACD and Super Oscillator lines are both trending upward, confirming that the momentum is shifting in favor of the bulls and indicating further short-term upside.

Furthermore, the Money Flow Index stands at 65, indicating that buying pressure is increasing, but there is still room before it reaches overbought territory.

Given these positive signs, MOVE could potentially rally to its psychological resistance at $0.90, which is 65% above current levels. This level has also acted as a significant resistance level for the altcoin. If it manages to break above this mark, it could aim for its yearly high of $1.12.

However, if MOVE falls below the lower trendline of the wedge, the setup may be invalidated. In such a scenario, the altcoin's value could drop to $0.37.

Disclosure: This article does not provide investment advice. The content and materials presented on this page are for educational purposes only.