Movement [MOVE] rose over 12% in 24 hours, outperforming other stocks in the market. MOVE is trading at 0.797 USD, with CoinMarketCap data showing a trading volume surge of 137%.
The upward trend of MOVE has propelled its market capitalization to over 1.79 billion USD, making this altcoin the 61st largest cryptocurrency by this metric.
One of the factors driving the upward trend of MOVE is the surge in buying activity, as short-term traders aim to take profits during the rise. However, at lower time frames, buying volume seems to have weakened, and if selling volume increases, it may trigger a downward trend.
The Relative Strength Index (RSI) has dropped to 41, nearing the oversold region. While this may indicate a short-term upward correction, it may also suggest that traders who bought during the uptrend are beginning to sell.
The green Bollinger Band trend indicator also shows that despite a surge in selling activity, bulls still hold the upper hand. If buyers re-enter the market, it may push the price back to the critical resistance level of 0.882 USD.
On the other hand, if the bearish trend continues and buyers fail to intervene, MOVE may fall to the critical support level of 1.618 Fibonacci level (0.57 USD).
Analyzing derivatives data
According to data from the MOVE cryptocurrency derivatives market, speculative activity has significantly increased, which may exacerbate volatility.
The outstanding contracts of the token increased to 86 million USD after a slight rise of 1.6% in 24 hours. Meanwhile, the trading volume in the derivatives market surged by 96%, reaching 2.35 billion USD.
Severe price fluctuations led to a surge in the number of liquidations for long and short positions, with liquidation amounts exceeding 8 million USD in 24 hours.
The long-short ratio is 0.99, indicating a neutral market sentiment, with slightly more short positions. However, in this balanced market, the risk of short squeezes or long squeezes is reduced, thereby lowering volatility.
The liquidation heatmap of MOVE illustrates this.
The liquidation heatmap of the MOVE cryptocurrency has a 3-day lookback period, showing that the upward trend triggered a series of short-term liquidations. As these positions were liquidated, it accelerated the upward trend due to forced buying.
On the other hand, there is a liquidation cluster below the price that may push MOVE down. The two areas that traders should pay attention to are 0.65 USD and 0.67 USD.
If MOVE falls to these levels, the liquidation of long positions may accelerate selling activity, exacerbating the downward trend.
