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- The Movement Labs token has faced uncertainty and fear in the market following the insider trading scandal.
- Sustained demand to drive a breakout past $0.23-$0.26 was not yet at hand.
Movement [MOVE] saw a scandal erupt almost ten days ago. Movement Labs suspended its co-founder, Rushi Manche, for alleged links to the MOVE token dump.
Following this development, Coinbase announced that it would suspend the trading of the token on the 15th of May.
This saw a 27% price correction, and the price reached $0.15, on the 7th of May. Surprisingly, even during the freefall on the price chart, buyers were taking long positions, convinced the asset was undervalued.
Their faith might have been rewarded- a good chunk of the early May losses after the insider trading scandal has been retraced. However, bullish traders should remain cautious.
The market structure was still bearish, and a move beyond $0.252 would be necessary to flip this pessimistic outlook.
MOVE bulls rebuffed at key Fibonacci retracement levels
Source: MOVE/USDT on TradingView
The recent lower high MOVE registered on the 1-day chart was at $0.258. The former support level at $0.2175 was under duress from the buyers, but the price did not succeed in breaking out at press time.
Even if this resistance level were surpassed, buyers should not immediately turn bullish. The OBV was in a downtrend, like the price, and formed a new low on the 7th of May.
Similarly, the Awesome Oscillator outlined that bearish momentum was prevalent.
Source: MOVE/USDT on TradingView
The 4-hour chart highlighted the overhead resistance zones more clearly. The 78.6% Fibonacci retracement level was at $0.23, and it had rebuffed Movement token bulls, at the time of writing.
The OBV was resurgent since the 7th of May, and was about to form a new high. The Awesome Oscillator was above the zero line, signaling bullish momentum.
Yet, the higher timeframe takes precedence here, and swing traders should remain wary of a bearish reversal.
Source: Coinglass
The 2-week liquidation heatmap highlighted the $0.255-$0.265 region as an attractive magnetic zone. AMBCrypto analyzed other lookback periods, such as 1-month and 3-month, and found that the $0.21 region had also been a sizeable liquidity cluster.
The liquidation levels to the south were sparse. Hence, from a liquidity point of view, a move southward appeared unlikely. However, as the OBV showed, there was not sufficient demand to justify the expectation of a rally to $0.26.
In conclusion, traders and investors should expect the MOVE downtrend to continue. The rest of the market was bullish, and altcoins were performing exceedingly well.
This could spur MOVE beyond the $0.252 local resistance, but the evidence at hand did not point toward an explosive upward move yet.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
