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Analyzing MOVE crypto’s rally – Will profit-takers fuel a reversal?
MOVE crypto has seen an astonishing 12% surge in the past 24 hours, with its market capitalization climbing to $1.79 billion and ranking it as the 61st largest cryptocurrency by this metric. As it stands at $0.797, there is a growing concern that profit-takers may fuel a reversal.
One factor that contributed to MOVE’s uptrend was a surge in buying pressure as short-term traders sought to book profits during the rally. However, it appears that buying volumes have subsided on lower timeframes, which could set off a downtrend if selling volumes increase.
The Relative Strength Index (RSI) has dropped to 41, and we are seeing an oversold region. While this could potentially precede a short-term correction to the upside, it may also suggest that traders who purchased during the uptrend are now selling their positions.
Despite the spike in selling activity, the green Bollinger Band Trend indicator suggests that bulls still have the upper hand. In the event buyers re-enter the market, they could push the price back up to a crucial resistance level at $0.882.
On the other hand, if the bearish trends persist and no new buyers step in, MOVE could drop down to the 1.618 Fibonacci level of $0.57.
A closer look at derivatives data reveals significant spikes in speculative activity that might drive volatility. The token’s open interest has jumped to $86 million after a slight 1.6% increase in 24 hours. Concurrently, volumes across the derivatives market have surged by an astonishing 96% to $2.35 billion.
Data from Coinglass also shows over $8 million worth of both long and short positions being liquidated within the same timeframe. This is a stark reminder that price moves can be unpredictable and that traders should proceed with caution.
A heatmap analysis reveals that MOVE’s uptrend caused the forced buying that led to an acceleration in its price increase due to short positions being wiped out. However, there are areas of potential support below $0.65 and $0.67. If MOVE were to drop to these levels, it could lead to the closure of long positions, ultimately fueling a decline.
In conclusion, while MOVE crypto has seen an impressive surge in recent times, traders should be wary of profit-takers potentially reversing this trend.
Source: ambcrypto.com
