Movement Network’s utility token, MOVE, dropped more than 20% in just 24 hours as investors fled amid leadership turmoil and growing market concerns.
Since the launch of its mainnet beta and token in December 2024, the Ethereum Layer-2 modular network has significantly underperformed.
Despite reaching a $2.5 billion market cap in early January, buoyed by a $100 million Series B funding round that valued the project at $3 billion, $MOVE’s market cap has now plummeted to under $500 million, reflecting a 70% decline in value.
What Went Wrong with $MOVE’s Price and Market Makers?
Much of the downward pressure on the $MOVE token has been attributed to poor market-making strategies and recent governance issues.
In the early hours of May 2, Movement Labs announced the suspension of co-founder Rushi Manche, citing an ongoing third-party review of the project’s governance procedures and market maker-related activities. This move has added to the uncertainty surrounding the project and contributed to the token’s recent decline.
Popular crypto influencer Ansem, an early investor in the project, voiced his frustration on X (formerly Twitter), labeling $MOVE as “the worst investment” he has ever made.
To make matters worse, Coinbase announced it would suspend trading of $MOVE on May 15, transitioning order books to limit-only mode, which has further intensified the negative sentiment surrounding the token.
This development follows weeks after Binance froze the profits of a market maker accused of offloading large volumes of $MOVE, raising concerns about the project’s token distribution and management. These actions have sparked further questions regarding the transparency and integrity of the project’s operations.
Is Co-Founder Rushi Manche Truly Involved in the $MOVE Price Manipulation?
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Internal investigations have uncovered that 5% of $MOVE tokens allocated to Web3Port somehow ended up with Rentech, a firm that swiftly liquidated its position.
Co-founder Cooper Scanlon revealed in a Slack message that the situation is currently under review, adding to the growing concerns about the project’s internal controls and token management.
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Documents from a third-party review have alleged that there were incentives to artificially pump $MOVE’s fully diluted value (FDV) to $5 billion, only to later dump tokens on the open market.
The agreement reportedly stipulated that once the FDV threshold was reached, Rentech would be allowed to sell its tokens and share the profits with others, raising serious suspicions about co-founder Rushi Manche’s involvement, as he was connected to distributing the agreement. This has deepened concerns about the project’s governance and potential manipulation.
On April 30, Rushi Manche took to X to acknowledge the team’s missteps, stating that they “trusted the wrong advisors” and mishandled operations during a turbulent market.
Investigations are still ongoing to determine whether Manche or the advisors were more deeply involved in the situation than previously disclosed, as concerns over potential misconduct continue to mount.
Traders Speculate Despite Bearish Sentiment
Despite the ongoing controversies, some traders see a potential opportunity to buy the dip.
According to CoinGlass, $MOVE’s open interest surged by 50.65%, while its trading volume skyrocketed by 695%, surpassing $1.3 billion in the past 24 hours. This significant increase in activity suggests that some market participants are betting on a rebound or looking to capitalize on the volatility.
The long/short ratio currently stands at 0.9778, with over $1.3 million worth of short positions liquidated, indicating that some traders may be positioning for a potential short squeeze or price reversal.
Technical Analysis: $MOVE Trapped in a Descending Wedge
On the $MOVE/USDT daily chart, the token has been in a persistent downtrend throughout 2025, marked by lower highs and lower lows.
However, the price seems to be stabilizing within the $0.11 to $0.13 range, which aligns with the 0.236 Fibonacci retracement level—a potential short-term support zone. If this level holds, there could be an opportunity for a rebound or at least a period of consolidation before the next move.
The $MOVE token is approaching the upper boundary of a falling wedge pattern, which is generally viewed as a bullish reversal formation in technical analysis.
If a confirmed breakout occurs above the wedge, particularly with a daily close above the 9-day SMA at $0.2307, this could signal a potential trend reversal.
Should the breakout materialize, Fibonacci extensions suggest the following resistance levels:
- $0.2950
- $0.4248
- $0.5547
- $0.6349
However, if $MOVE fails to hold above the key support zones around $0.1185 or $0.0849, it could result in further downside and continued investor pessimism.
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