Movement [MOVE] fails to reclaim key levels – Sell-offs incoming?

After reaching a low of $0.786 on Monday, Movement [MOVE] experienced a notable spike of 11.16% within a 16-hour period. However, this increase was followed by a 9% decline over the next 36 hours, leaving MOVE trading just under 1% above Monday’s lows at the current moment.

Contrastingly, Bitcoin [BTC] managed to achieve an 8.7% gain from its Monday lows, successfully reclaiming the $92.4k zone as a sturdy demand area and showing signs of moving towards its $102k resistance levels. The divergent price actions of both MOVE and BTC signified the relative weakness displayed by MOVE.

Examining Movement’s Signals Indicates a Bearish Advantage

Analysis of the 4-hour price chart revealed a trading range between $0.83 and $1.13 that has persisted for almost a month. Despite the recent bounce, MOVE failed to reclaim the lower end of the range as a support level, and the subsequent drop below $0.83 raised concerns.

Over the past two weeks, the A/D indicator exhibited a consistent downward trend, indicating ongoing selling pressure and buyer weakness. This trend suggested a potential decline for MOVE towards $0.728 or lower in the upcoming days.

The on-chain metrics also failed to show bullish signs, with the 30-day MVRV ratio slightly in the negative territory. While this might discourage short-term holders from selling at a loss, it provided little comfort overall.

Additionally, the age consumed metric remained subdued in January, reflecting minimal activity involving the movement of significant token amounts or older tokens.

Moreover, the 90-day mean dollar invested age displayed a consistent upward trajectory, suggesting that holders refrained from transferring their coins, potentially signaling network stagnation.

Given that Movement has only been in the market for slightly over a month, the MDIA’s upward trend did not raise concerns among bullish investors. However, a potential downturn in MDIA could pave the way for substantial price gains.