- A recent report revealed that the Movement Foundation team executed an insider trading deal with a third party selling MOVE
- Investors have kept accumulating MOVE, betting on a rally despite the controversy
MOVE rose by 2.96% in the last 24 hours, reflecting growing buying momentum across the board. This move seemed to extend the bullish trend seen over the past week, during which MOVE gained by 11.80% on the charts.
AMBCrypto’s analysis described this rally as an unusual market event, especially in light of the bearish development within Movement’s ecosystem. Could MOVE be heading in a new direction now?
Insider trading hits Trump-backed MOVE token
According to reports, the Movement Foundation, backed by Trump’s World Liberty Financial, participated in insider trading.
The foundation signed a loan agreement with a third party, handing over 50% of MOVE’s circulating supply. That party then dumped 66 million MOVE, valued at $16.96 million.
Such a sell-off, especially from a third party, usually pressures the price lower by signaling weak market conviction.
On the contrary though, MOVE’s market participants might be unfazed. In fact, many traders view the price drop as a discounted buying opportunity, while continuing to accumulate the asset.
Traders go long, treat MOVE as undervalued
As expected, traders have started to place long bets on the asset, undeterred by the insider trading scandal.
Data from Coinglass netflows, which tracks spot market activity, revealed that traders resumed buying after 12 consecutive days of selling.
Source: Coinglass
In total, they purchased over $81,000 worth of MOVE – An amount that could rise as sentiment improves.
In the Futures market, the trend seemed to align too. MOVE’s funding rate rose to 0.0048%, signaling bullish dominance. This rate indicated that long traders now control the market and may be paying a premium to maintain their positions.
Source: Coinglass
If the funding rate continues to climb, it will likely attract more buyers and open the door to a broader market rally.
Analysts believe MOVE could target the $0.30 zone in the near term.
At the time of writing, the token was trading within an ascending triangle pattern – A formation known to precede breakouts.
Source: TradingView
If MOVE breaks through its resistance level, its price could jump from $0.25 to $0.30.
And yet, the token may still consolidate within this structure before making a decisive move on the charts.
Community sentiment starts to crack
Finally, AMBCrypto used CoinMarketCap’s community voting feature to track sentiment and discovered a decline in bullish outlook among investors.
On 29 April, 82.5% of the asset holders viewed the asset as bullish. That number has since fallen to 77% – Indicating a 5.5% drop in investor confidence.
Source: CoinMarketCap
If community sentiment keeps falling, the token may reverse its recent gains and lose any upward momentum.