Movement [MOVE] Soars 13% – But Bearish Signals Persist

Movement [MOVE] experienced a notable 13% surge on Wednesday, December 24th. According to CoinMarketCap, the cryptocurrency's daily trading volume skyrocketed, increasing by nearly 400% over the past 24 hours.

Key Takeaways

Movement [MOVE] surged 13% on December 24th, with trading volume increasing by 400%.
Daily Active Addresses and Weighted Sentiment were stable, indicating holders aren't quick to sell.
The long-term trend for MOVE remains bearish, with only 28% of total supply currently in circulation.
Despite short-term bullish signals, there are warnings of a potential trap.
Traders are advised to consider short positions due to ongoing negative indicators.

MOVE’s Volume Spike Masks a Familiar Downtrend Pattern

Data from Binance regarding the MOVE/USDT trading pair indicated that spot trading volume jumped six times higher than the average over the previous 20 days.

MOVE Santiment Source: Santiment

However, despite the volume surge, there wasn't a significant spike in Daily Active Addresses, and the Weighted Sentiment remained relatively flat in recent days. Although there was a noticeable increase in Dormant Circulation on December 23rd, the Mean Coin Age continued to rise gradually. Overall, it appears that holders are not quickly cashing in on profits from this bounce—raising questions about the potential for further increases in MOVE's price.

Long-Term Outlook for MOVE

MOVE 1-day Chart Source: MOVE/USDT on TradingView

Movement's downtrend has been persistent since January 2025. The altcoin has remained unaffected by the bullish trends of Bitcoin [BTC] during both June and late September. Following the market-wide downturn after the crash on October 10th, many MOVE holders found themselves incentivized to sell.

This selling may relate to the token’s unlocking schedule and the lack of bullish catalysts, with only 28% of the total supply currently in circulation. A monthly unlock of $5.89 has posed challenges for buyers to absorb.

Potential for a Bullish Breakout

While there is a substantial increase in daily trading volume and a surge in Open Interest, the argument for a bullish breakout remains weak. Although these rise indicators suggest short-term bullish sentiment, there are cautionary signs of a possible trap.

Trader Insights: Consider Short Positions

The Chaikin Money Flow (CMF) indicates a deeply negative scenario. However, this alone does not necessarily point to a short opportunity. Recent price action has revealed a bearish pattern with multiple bearish market structure breaks, along with days showing high trading volume that failed to reverse the bearish sentiment.

For instance, on November 22nd and December 14th, short-term rallies yielded returns of 55.9% and 54% from the day’s low to high, respectively. Both instances showcased solid trading volume but quickly retraced within days, allowing the downtrend to persist.

Conclusion

Disclaimer: The insights shared here do not constitute financial, investment, or trading advice and reflect the writer's personal views.