MOVE, the native coin of the Ethereum-based Layer-2 blockchain Movement, experienced a meteoric rise of 50% shortly after its launch on December 9. However, it has now reversed course, plummeting by a similar percentage.
At press time, profit-taking is strengthening, putting the MOVE token price at risk of plunging further.
Movement Token Holders Sell For Gains
MOVE launched on Monday and quickly captured the attention of investors. As a result, the token’s price surged 50% in the 24 hours that followed, peaking at $1.45. The token also reached a $3 billion market capitalization, securing its position as the 60th top cryptocurrency within the same period.
However, the market trend has since shifted, and the altcoin has now shed 50% of its value, trading at $0.68 at press time. Its Aroon Down Line, assessed on a daily chart, confirms the strength of MOVE’s current downtrend. As of this writing, MOVE’s Aroon Down Line is 100%.
An asset’s Aroon indicator measures the strength and direction of its trend by tracking the number of periods since the highest and lowest prices over a given time frame. It consists of two lines: Aroon Up and Aroon Down.
When the Aroon Down line reaches 100%, the lowest price during the selected period occurred recently, signaling a strong downtrend. This suggests that the market is in a bearish phase with little upward momentum.
Additionally, MOVE’s declining Chaikin Money Flow (CMF) reinforces this bearish outlook. It currently sits below the zero line at -0.15.
The CMF indicator tracks money flows into and out of the market. A negative CMF value signals increasing selling pressure and suggests the potential for a continued price decline.
MOVE Price Prediction: Value Is at Risk of Dropping Further
On the 1-hour chart, the Layer-2 token trades at $0.68, hovering above the support formed at $0.60. If bearish pressure strengthens, the altcoin’s price may test this support level. Should it fail to hold, the downward trend may continue.
On the other hand, if buying activity resumes, the MOVE token price will breach resistance at $0.77 and climb toward $0.88.
Disclaimer
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