- In the derivatives market, traders are bullish and betting on a MOVE rally.
- However, spot traders are selling, which could hinder its upward momentum.
Movement [MOVE] remained among the top gainers in the market, jumping 7.33% in the past 24 hours and extending its weekly gain to 16.73% during this period.
While the market still shows potential for further upside, the current selling pressure from profit-taking could delay the asset from reaching higher highs.
Forces behind MOVE’s rally
The recent surge in MOVE has been driven by buyers in the derivatives market over the past 24 hours.
The buying volume confirms this, as the Taker Buy Sell ratio— which indicates whether buying or selling volume is dominating— remains above 1.
With a reading of 1.0033, the ratio suggests that derivative traders’ buying volume outweighs selling activity in the market.
Adding to the bullish sentiment is the growth in unsettled derivative contracts, which surged 19.61% to $92.27 million.
This suggests that more contracts were opened, likely consisting of buying orders, as volume increased during this phase.
Source: Coinglass
Short traders in the derivatives market who bet against a MOVE rally have recorded major losses as the price moved against them. At the time of writing, $704,000 worth of short positions have been liquidated.
The effect of buyers on MOVE
The current buying pressure in the derivatives market has pushed MOVE to test the descending channel on the 4-hour chart. While it briefly broke above this level, it faced strong resistance at 0.555, forcing the price lower.
According to AMBCrypto analysis, a successful breakout above this resistance could flip it into a support level, triggering a rally toward $0.848—a 52.90% increase.
Source: TradingView
However, the price is retreating below the descending channel rather than rallying as expected. AMBCrypto found that this selling pressure is likely due to traders taking profits.
Profit-taking hinders MOVE’s potential
According to Coinglass exchange netflow data, MOVE has faced significant selling pressure, as indicated by a positive reading. This suggests that more MOVE tokens are being deposited into exchanges for sale.
In the past 24 hours, $693,790 worth of MOVE has been sold across multiple exchanges, likely as traders take profits. Continued selling pressure could push MOVE lower.
Source: Coinglass
If buying activity increases across these exchanges, it could reinforce the existing derivative buying pressure and drive a major upswing for the asset in the coming trading sessions.
Credit: Source link