The price of Layer-2 (L2) token MOVE has soared 12% over the past 24 hours, making it the market’s top gainer. This double-digit rally comes after the Donald Trump-backed DeFi platform World Liberty Financial acquired $2 million worth of MOVE tokens on Tuesday.
However, with a persistent bearish bias against MOVE, this rally may be short-lived. This is why.
Movement’s MOVE Token Spikes Amid Trump-Linked Purchase
On Tuesday, the Trump family-backed DeFi platform World Liberty Financial bought $2 million worth of MOVE tokens. According to Arkham Intelligence, the purchase occurred in multiple batches during the US morning hours, with the first transaction settling at 14:22 UTC.
A few minutes later, at 14:48 UTC, a prominent crypto account on X DB reported that the Movement is one of the blockchain networks currently in discussions with the Elon Musk-led Department of Government Efficiency (D.O.G.E).
These events have led to a spike in MOVE’s value even after the Movement’s co-founder, Rushi Manche, clarified that the Layer-2 network has had no official communication or contact with the DOGE.
“hectic morning as usual and appreciate all the support from everyone. (I) want to clarify that nothing from the movement labs offices or growth team have crossed DOGE’s desks — all crypto is very early stage across the board and policy is still an ongoing discussion throughout the entire administration,” Manche wrote on X.
MOVE Rallies, But There Is a Catch
While MOVE currently outperforms the top 100 cryptos, its price gains may not last, as on-chain data reveals that the bearish bias against it remains significant.
For example, its funding rate has dropped to its lowest since January 7, indicating a spike in demand for short positions. At press time, this stands at -0.084%. The funding rate is a periodic fee exchanged between long and short traders in perpetual futures contracts. It is designed to keep contract prices aligned with the spot market.
A negative funding rate means short traders are paying long traders, indicating that the market sentiment is bearish despite the price rally. This suggests that the MOVE rally is driven by short squeezes rather than strong organic demand, casting doubt on the rally’s sustainability.
Moreover, MOVE has continued to record spot outflows despite its price rally. According to Coinglass, the altcoin has witnessed four days of consecutive outflows totaling $19 million.
As of this writing, outflows from the MOVE spot markets on Wednesday totals $440,470, indicating that market participants are selling their tokens for profit.
MOVE Price Prediction: Profit-Taking May Drag Token to New Lows
MOVE risks shedding its recent gains if profit-taking activity persists. In that case, the L2 token’s price could plunge to $0.71. If this support level fails to hold, it could drop further to $0.55.
On the other hand, if actual demand for MOVE spikes, it could break above $0.87 and climb toward $1.08.
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