MOVE Index Surges 7% in 24 Hours Amid Derivative Buying Frenzy, Shorts Liquidated

MOVE index, a key measure of market volatility, surged by 7% within a 24-hour period, driven by significant buying pressure from derivative traders. This rally extended MOVE's weekly gain to 16.73%, positioning it among the top gainers in the market. The buying volume in the derivatives market, as indicated by the Taker Buy Sell ratio, remained above 1, suggesting that buying activity outweighed selling. This bullish sentiment was further supported by a 19.61% increase in unsettled derivative contracts, reaching $92.27 million, which likely consisted of buying orders.

However, the upward momentum of MOVE was threatened by profit-taking activities from spot traders. The current selling pressure from profit-taking could delay the asset from reaching higher highs. Short traders in the derivatives market who bet against a MOVE rally have recorded major losses as the price moved against them. At the time of writing, $704,000 worth of short positions have been liquidated.

The buying pressure in the derivatives market has pushed MOVE to test the descending channel on the 4-hour chart. While it briefly broke above this level, it faced strong resistance at 0.555, forcing the price lower. A successful breakout above this resistance could flip it into a support level, triggering a rally toward $0.848—a 52.90% increase. However, the price is retreating below the descending channel rather than rallying as expected, likely due to traders taking profits.

According to exchange netflow data, MOVE has faced significant selling pressure, as indicated by a positive reading. This suggests that more MOVE tokens are being deposited into exchanges for sale. In the past 24 hours, $693,790 worth of MOVE has been sold across multiple exchanges, likely as traders take profits. Continued selling pressure could push MOVE lower. If buying activity increases across these exchanges, it could reinforce the existing derivative buying pressure and drive a major upswing for the asset in the coming trading sessions.

The rally in MOVE index highlights the ongoing volatility in the financial markets, as investors navigate through uncertain economic conditions. The surge in derivative trading activity suggests that market participants are increasingly turning to hedging strategies to protect against potential downside risks. However, the profit-taking by spot traders indicates a cautious approach, as investors remain wary of the potential for further market