- The MOVE cryptocurrency is up more than 12% in 24 hours after a surge in buying pressure.
- A falling RSI on the hourly chart indicates that traders who buy during the rally may take profits.
Movement (MOVE) outperformed the rest of the overall market after posting a gain of over 12% in 24 hours. At press time, MOVE was trading at $0.797 with a 137% surge in trading volume. CoinMarketCap.
MOVE’s upward trend has seen its market capitalization surge past $1.79 billion, with the altcoin now ranking as the 61st largest cryptocurrency by this metric.
One of the factors that triggered MOVE’s rally was a surge in buying activity as short-term traders looked to profit during the rally. However, buying volume appears to have subsided during lower hours, which could trigger a decline if sales pick up.
The Relative Strength Index (RSI) has fallen to 41 at press time, close to oversold territory. This could be ahead of a short-term upward correction, but it could also suggest that traders who bought during the uptrend are starting to sell.
Source: TradingView
The green Bollinger Bands trend indicator shows that the bulls have the upper hand despite a surge in selling activity. If buyers re-enter the market, the price may return to the key resistance level of $0.882.
On the other hand, if the bearish trend continues and buyers fail to intervene, MOVE could fall to the important support level of 1.618 Fibonacci level ($0.57).
Derivatives data analysis
Looking at derivatives market data for the MOVE cryptocurrency, we see a significant surge in speculative activity that can cause volatility.
The token’s open interest rose to $86 million after rising slightly by 1.6% in 24 hours. At the same time, trading volume in the derivatives market increased 96% to $2.35 billion.
Volatile price movements led to a surge in liquidations of both long and short positions, with more than $8 million liquidated in 24 hours.
Source: Coinglass
The long/short ratio of 0.99 shows neutral market sentiment with slightly more short positions. However, in these balanced markets, the risk of a short or long squeeze is reduced, which reduces volatility.
MOVE’s liquidation heatmap shows:
The liquidation heatmap for the MOVE cryptocurrency with a 3-day conversion confirmation period shows that the upward trend has resulted in a series of short-term liquidations. As these positions were wiped out, the upward trend accelerated through forced purchases.
Source: Coinglass
Is your portfolio green? Check out our Moving Profit Calculator
On the other hand, there is a liquidation cluster below the price that could push MOVE lower. Two areas that traders should watch out for are $0.65 and $0.67.
If MOVE falls to this level, long positions may be closed and selling activity may accelerate, accelerating the downtrend.