Here’s why MOVE rallied 26% as the crypto market tanked
MOVE, the native token of the Ethereum layer-2 blockchain Movement, experienced a significant price rally outpacing the broader crypto market, which remained on a downward trajectory.
Movement (MOVE) recorded the highest gains among the top 100 largest crypto assets on Dec. 20, reaching an intraday high of $0.877 and closing with a market capitalization of nearly $2 billion.
The altcoin’s price rally coincided with a 63% rise in daily trading volume, which exceeded $1.6 billion, indicating growing interest among traders. Additionally, CoinGlass data reveals that open interest in its futures market surged to an all-time high of $103.93 million, nearly double the $56.03 million recorded the previous day, signaling a jump in demand among traders.
Why is MOVE rising?
The major driver of the altcoin’s gains appears to be tied to its partnership with leading digital asset custody and security company BitGo, which will bring WBTC (a tokenized version of Bitcoin on the Ethereum blockchain) onto Movement’s mainnet.
By incorporating WBTC, Movement aims to enhance its DeFi offerings, providing users with more options for asset utilization, liquidity provision, and participation in decentralized financial services.
Movement’s price surge can also be attributed to the launch of its mainnet last week. As an Ethereum layer-2 network powered by MoveVM, Movement issued its native token, MOVE, last week. A portion of these tokens was distributed to early adopters and community members.
Further, MOVE has gained significant traction by securing listings on major exchanges such as Binance, Coinbase, OKX, and Upbit.
Movement kickstarted the token’s launch with an $830 million airdrop. Projects that combine a large user base, substantial airdrops, and strong exchange support often experience initial price spikes before stabilizing.
The altcoin’s rally came as the broader crypto market slumped 9.1% over the past day, standing at $3.39 trillion when writing, fuelled by Bitcoin’s (BTC) drop below the $100k level, which led to a cascading effect across the broader altcoin market with leading assets like Ethereum (ETH), XRP (XRP), Solana (SOL) and BNB (BNB) all posting losses over the past day.
MOVE could rally to $1 again
Experts suggest that MOVE could continue to rally in the coming weeks, with the price likely returning to $1 and potentially surpassing it.
According to a crypto trading signal community on X, Rose Premium Signals, MOVE could continue its rally, potentially reaching $1.3, which represents an increase of approximately 60% from its current price levels.
Meanwhile, analyst Globe Of Crypto observed that MOVE recently broke out of a bullish pennant pattern in the 4-hour time frame. Such a breakout typically signals a continuation of an asset’s price rally. Based on this, the analyst predicts that MOVE could rise by another 40-50%, potentially surpassing $1 in the next week.
