Movement (MOVE) Price Drops to Record Low After Rushi Manche Gets Suspended Over Dump

Key Takeaways

• Movement Labs (MOVE) suspended its co-founder on May 2.
• The suspension comes after an investigation into a token dump.
• Can the MOVE price recover after reaching a new all-time low?

On May 2, Movement Labs announced the suspension of Rushi Manche, its co-founder, from the team. The decision comes after Coinbase suspended MOVE trading due to an alleged token dump.

The MOVE price has fallen by 80% this year and declined another 25% due to yesterday’s negative news, reaching a new all-time low.

Let’s examine the reasons for this decline and the path moving forward.

Movement Labs Token Dump

The Coinbase suspension follows a report on April 21, which alleged that Movement Labs signed a market-making agreement that granted a middleman control of a significant portion of MOVE tokens.

The market maker is Web3Port, while the Middleman is Rentech. The latter has no digital footprint and liquidated $38 million in MOVE tokens shortly after the latter’s exchange debut.

Movement Labs co-founder Coope Scanlon told employees in a Slack chat that he is investigating how 5% of MOVE tokens allocated to Web3Port went to Rentech, which promptly sold them.

A 3rd party organization that reviewed the documents concluded that there are incentives to manipulate the price to a $5 billion Fully Diluted Value (FDV) before dumping it on the retail market.

Specifically, the contract said that at a $5 billion FBV, Rentech could sell and split the profits with them. The suspension has led to speculation that Rushi Manche was behind the deal since he shared it.

Movement Labs promised a buyback and the creation of a Movement Strategic Reserve, but that has not happened yet.

As a result of the investigation, Movement Labs has delayed the MoveDrop program to an unspecified date.

MOVE All-Time Low

The daily time frame analysis shows that MOVE has fallen since December 2024.

Initially, the price traded inside a descending parallel channel. However, it broke below it in April and validated it as resistance yesterday.

Since the price is at an all-time low, the wave count can help determine the following closest support levels.

The count suggests MOVE is in its downward movement’s fifth and final wave.

Wave five has extended and is longer than waves one and three combined.

If it reaches the 1.61 length of waves one and three, the MOVE price can fall to a new all-time low of $0.136.

Technical indicators are bearish, suggesting the downward trend will continue.

The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are falling, and neither has generated a bearish divergence.

No Relief Ahead

After negative news about a token dump scandal, the MOVE price fell to a new all-time low on May 1.

Movement Labs suspended its co-founder, Rushi Manche, due to the scandal.

The MOVE price action shows no bullish signs, exacerbating the already bearish sentiment.