MOVE, the native coin of the Ethereum-based Layer-2 blockchain Movement, surged 50% shortly after its launch on December 9. However, it has now reversed direction, declining sharply at a similar percentage.
At the time of writing, profit-taking is being consolidated, putting the MOVE token price at risk of further decline.
Token holders are selling to take profits
MOVE launched on Monday and quickly attracted the attention of investors. As a result, the token price rose by 50% in the following 24 hours, peaking at $1.45. This token also reached a market capitalization of $3 billion, securing its position as the 60th top cryptocurrency during the same period.
However, the market trend has changed and the altcoin has now decreased by 50% in value, trading at $0.68 at the time of writing. Its Aroon Down line, assessed on the daily chart, confirms the strength of the current bearish trend of MOVE. As of this writing, MOVE's Aroon Down line is at 100%.
MOVE Aroon Down Line. Source: TradingView
The Aroon indicator of the asset measures its trend strength and direction by tracking the number of periods since its highest and lowest prices in a given timeframe. It consists of two lines: Aroon Up and Aroon Down.
When the Aroon Down line reaches 100%, the lowest price in the selected timeframe has occurred recently, signaling a strong bearish trend. This indicates that the market is in a downtrend with little upward momentum.
Additionally, the declining Chaikin Money Flow (CMF) of MOVE reinforces this bearish outlook. It is currently below the zero line at -0.15.
MOVE CMF. Source: TradingView
The CMF indicator tracks the flow of money in and out of the market. Negative CMF values signal increasing selling pressure and indicate the likelihood of continued price declines.
MOVE price prediction: The value is at risk of further decline
On the 1-hour chart, the Layer-2 token is trading at $0.68, fluctuating above the support level formed at $0.60. If the downward pressure intensifies, the altcoin's price may test this support level. If it does not hold, the downward trend could continue.
MOVE price analysis. Source: TradingView
On the other hand, if buying activity continues, the MOVE token price will surpass the resistance level at $0.77 and rise to $0.88.