Movement (MOVE) Whales Scoop Up 400M Tokens After Market Maker Split

Key Takeaways

• Movement Network ended its partnership with a market maker accused of unauthorized token sales.
• Large investors increased their holdings from 553 million to 953 million, worth nearly $185 million.
• MOVE broke out of a descending triangle, with indicators showing a possible rally toward $0.90.
• Interested in buying or selling MOVEMENT MOVE? Read our review of the best exchanges to buy and sell MOVEMENT MOVE?

MOVE, the native token of the modular blockchain project Movement Network, surged 7% in the last 24 hours after the project cut ties with a market maker suspected of a shady sale.

Following the move, crypto whales seized the opportunity to accumulate more MOVE tokens. Here’s a full breakdown of the latest developments and what could be next for the token.

Movement Network Reacts to Dump With Major Buyback

On Feb. 24, the number of tokens held by addresses who own 100 million to 1 billion MOVE was 553 million. That figure has increased to 953 million today, indicating that whales purchased about 400 million tokens within the last 24 hours.

That purchase is worth nearly $185 million at the MOVE token’s current price. This accumulation came shortly after Movement Network disclosed that it had cut ties with a market maker and activated a buyback plan.

In a statement released Monday, the project admitted it was unaware of the situation until Binance reached out.

It revealed that the unnamed market maker offloaded a substantial amount of MOVE without a corresponding purchase, acting against the project’s wishes.

Responding to this, the project said it had cut every relationship with the MM.  It also mentioned that it informed other exchanges and has recovered the funds.

Concerning the funds recovered, Movement noted that it will undergo a buyback plan worth $38 million.

“All cash proceeds recovered from the Market Maker will be used by the Movement Network Foundation to establish the Movement Strategic Reserve: a 38M USDT buyback program to purchase $MOVE for long-term use and to return the USDT liquidity to the Movement ecosystem,” The blog post stated .

Price Rises Above Descending Triangle

The MOVE token price jumped from $0.42 to $0.46 following the clarification. A look at the 4-hour chart shows that the price increase helped the altcoin break out from a descending triangle.

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The breakout from this bearish pattern was also accompanied by a rise in the Chaikin Money Flow (CMF) rating. On the 4-hour chart, the CMF reading has climbed to 0.13, indicating rising buying pressure.

Should this trend continue, the MOVE’s price might extend its upswing higher than $0.46. With support at $0.43, MOVE might see a breach of the $0.50 resistance with this setup.

MOVE Price to Inch Closer to $1

Like the 4-hour chart, the daily chart also agrees that MOVE’s price can trade higher. As seen below, the decline from $1 to $0.40 triggered the formation of a falling wedge.

A falling wedge is a bullish reversal pattern formed by two descending trend lines — one tracking lower highs and the other lowering lows.

As of this writing, the MOVE token price has broken out of the upper trendline, indicating a potential extended rally.

If validated, the cryptocurrency’s value might climb to $0.90 around the 0.382 Fibonacci level. A highly bullish market condition could see the price rally to $1.11.

However, if MOVE breaks below the lower trendline of the wedge, this forecast might be invalidated. In that scenario, the altcoin’s value might sink to $0.33.