- MOVE gained massive momentum across the market as Open Interest and market volumes surged
Movement [MOVE], at the time of writing, was among the top gainers in the market after rallying by over 7% in the last 24 hours. Thanks to the same, its weekly gains climbed to over 17.9% on the charts.
Hence, on the face of it, market sentiment appeared to be bullish. However, AMBCrypto’s analysis revealed that bears are still active and they are betting on MOVE’s decline in the near term.
A flash of bullish signals
Movement’s [MOVE] performance, over the last 24 hours, has been very impressive. Its price surge, despite the broader market decline, has been largely driven by buying activity in the derivatives market. Especially as Open Interest and buying volume increased.
During this period, Open Interest—known for representing the amount of unsettled derivative contracts in the market—rose by 17% to $95.36 million. This indicated that more contracts were opened. AMBCrypto analyzed other key metrics to determine whether buy or sell contracts dominated.
Source: Coinglass
The altcoin’s Taker Buy-Sell Ratio confirmed that buying contracts likely dominated, as the volume of buyers outweighed sellers in the derivative market over the past 24 hours, with a reading of 1.027. A reading above 1 indicates that there are more buyers than sellers in the Futures market.
Similarly, MOVE’s overall trading volume surged by over 300% in the aforementioned period, surpassing $700 million. Historically, a price hike accompanied by a volume surge means that buyers outnumber sellers.
Warning ahead – MOVE sellers could take charge
Despite the bullish momentum, however, sellers in both the derivatives and spot markets have been gaining traction lately.
At the time of writing, the altcoin’s Open Interest Weighted Funding Rate had turned negative. This hinted at the presence of sellers in the market, despite its bullish trends. Its OI-weighted funding rate stood at -0.0741 – A significantly high negative figure alluding to strong bearish sentiment across the board.
Source: Coinglass
In the market, the Open Interest Weighted Funding Rate is a key indicator of sentiment in the derivatives market. Especially since it combines both Open interest and funding rate to provide a more precise measure of market direction.
In the spot market, traders sold a total of $1.24 million worth of MOVE, as determined by the exchange netflows. This sell-off could be simple profit-taking or the start of a more significant downturn.
Up or down? MOVE at a crossroads
Movement [MOVE] is currently at a critical juncture. Using Fibonacci levels, AMBCrypto marked key price points on the chart.
If bears take control, a confirmation will come if MOVE’s current candlestick closes below the support level of $0.4859 and drops further, with the next stop at $0.4639.
Source: TradingView
However, if the $0.4859 support level holds, MOVE could see a bounce higher, potentially reaching $0.5573. If bullish momentum continues, the price could climb even further.
