MOVE’s price action surprised many recently after it registered a rally of over 15% in less than 24 hours. This rally came on the back of the broader market’s latest pullback on the price charts.
MOVE’s sudden surge was sparked by the spot listing of the token on the Hyperliquid exchange. This DEX dominates perpetual trading. However, it has also been making a statement in spot trading, with the same now boasting over 700k active addresses.
This announcement means that MOVE can now be used as collateral for perp trading, thus increasing the trading activity of the token. In fact, the token’s daily trading volume spiked by 515% too.
The aforementioned surge was in line with the crypto’s price action and network activity. Especially now that MOVE has transformed from an Ethereum (ETH) Layer 2 (L2) to an L1 blockchain.
Price breaks out, but sellers still present
The price action charts revealed that Movement [MOVE] crypto’s price broke out of a sideways consolidation pattern. The pattern had been in play since mid-December, with the price bouncing between $0.0336 and $0.0400.
The indicators aligned with the momentum sparked by the Hyperliquid listing. The MACD showed gradual growth, while the Stochastic RSI confirmed buyer dominance.
Despite the breakout, the price seemed to be struggling to push past $0.045 though, as evidenced by the wicks of the bullish candles. This indicated that sellers were retaliating with a spirited fight at press time – Hindering a move towards $0.06.
On the contrary, the existence of more cumulative long liquidation leverage suggested that traders may be betting more on an uptrend.
In fact, the longs were close to $4 million, compared to $2.67 million in shorts.
Additionally, data from Coinglass revealed that these traders have been using leverage up to 50x. This indicated that traders might be embracing the risk that comes with overleveraging.
Here, it’s worth noting, however, that deleveraging would spark a move in the opposite direction.
Transactions stabilize and holders rise, but addresses dip
That was not the end of bullish action though as the network activity seemed to be consistent with the same.
In fact, the number of MOVE holders has been rising since 09 January, with the same numbering 39.32k at press time.
Additionally, the transaction count stabilized over the past 7 days. According to Token Terminal’s data, these days averaged over 550k transactions.
At the time of writing, the total count for the week stood at 4.2 million transactions.
On the other hand, the number of monthly active addresses dipped by 31% and fell to 14.8K. This implied that despite the higher number of transactions, users have been declining over the mid-term.
To put it simply, this result raises questions about the sustainability of the surge. Even though the listing itself played a major role in driving the altcoin’s rally.
Final Thoughts
- MOVE’s 15% rally turned a lot of heads among the market’s crypto traders.
- Network activity corresponded with the hike in MOVE’s value, despite the presence of some sellers in the market.
