Why Movement [MOVE] Crypto Is Gaining Momentum: L1 Transition, Buybacks, and More

Movement [MOVE] crypto appears to have potentially reached its low point after a challenging year. The platform has successfully transitioned from an Ethereum Layer 2 (L2) blockchain to a fully independent Layer 1 (L1) blockchain.

Key Takeaways

Movement [MOVE] has transitioned from an Ethereum Layer 2 to a standalone Layer 1 blockchain.
The price of MOVE recently increased by over 12%, supported by growth in transaction volume and activity.
Partnerships with DeFi applications are contributing to funding and buyback programs.
The altcoin aims to break key resistance levels to maintain upward momentum despite current bearish pressure.

Movement [MOVE] crypto

In the last 24 hours, MOVE experienced a surge of over 12%, according to data from CoinMarketCap, marking its second consecutive day of gains. Daily trading volume saw a significant increase, doubling to surpass $84 million.

Reasons Behind the Surge in MOVE Crypto

The recent upward movement in MOVE can be attributed to not just its technical advancements but also significant developments in fundamentals and network activity.

On the fundamentals side, Movement has formed partnerships with over 10 decentralized finance (DeFi) applications. These collaborations channel funds into the Movement ecosystem through transaction fees. This revenue contributes to MOVE’s buyback program, which aids in decreasing the circulating supply in the market.

A key partner within this ecosystem is LayerBank, whose ULAB token launch on the MOVE network generated approximately $2.3 million, enhancing DeFi integration.

Regarding network activity, the number of Active Monthly Addresses rose by 17%, reaching 21,400 as of the latest updates. This growth indicates increased network utilization since early December, despite lingering low prices.

Movement

Source: Token Terminal

The total number of accounts created on the platform is nearing 570,000, with deployed contracts totaling 28,837 across 4,710 deployers, per Movement Explorer data.

Moreover, the transaction count surged from 50,900 to 84,900 within just two days, bringing the monthly total to 2.8 million transactions. These on-chain metrics have supported the price growth observed in recent days. However, will the technical setup be strong enough to sustain this trend?

Can the Altcoin Maintain Its Momentum?

On hourly charts, MOVE successfully broke through the descending trendline resistance that has constrained its price for over two months since the crash that started on October 10.

Historically, the altcoin has struggled, remaining in a downtrend after its launch rally, which peaked at slightly above $1.50 on December 25, 2024. Following the recent breakout, MOVE’s price rose by more than 51% but faced immediate resistance, stabilizing around $0.0418. If it can maintain above this level and surpass $0.0600, it may indicate an ongoing uptrend. Conversely, failure to do so could allow sellers to regain control.

Despite some bullish indicators, sellers have shown their influence, as indicated by the MACD bars. Additionally, the Cumulative Volume Delta (CVD) was recorded as negative at $8.35 million, suggesting that selling pressure dominated after the brief price rally.

MOVE

Source: TradingView

While MOVE showed bullish signs throughout the day, sellers continue to hold a strong position. Although the altcoin is currently in a bearish market, there are early signs of a potential turnaround after a year of price declines.

For this potential reversal to take hold, a significant market shift on larger timeframes will be required.