Donald Trump-endorsed DeFi token MOVE has surged by 12% in the last 24 hours, emerging as the top performer in the market. The spike follows the acquisition of $2 million worth of MOVE tokens by World Liberty Financial, a DeFi platform backed by the Trump family.
Despite this significant rally, doubts linger over the sustainability of MOVE's upward trajectory due to prevailing pessimism surrounding the token.
Recently, the purchase of MOVE tokens by World Liberty Financial injected fresh momentum into the token's value. The acquisition of $2 million in MOVE tokens transpired in stages during the morning hours in the US, with the first transaction concluding at 14:22 UTC.
Shortly after, a prominent crypto account on X DB revealed that Movement is engaging in discussions with the Department of Government Efficiency (D.O.G.E) spearheaded by Elon Musk, sparking a further uptrend in MOVE's value.
However, Movement's co-founder, Rushi Manche, clarified that there has been no official communication or engagement between the Layer-2 network and DOGE, emphasizing the nascent stage of the crypto space and the ongoing policy debate within the administration.
Despite MOVE's current outperformance of top cryptocurrencies, concerns are raised regarding the token's longevity given the substantial bearish sentiment reflected in on-chain data.
The funding rate for MOVE has plummeted to its lowest level since January 7, pointing towards a surge in demand for short positions, denoting a bearish market sentiment even amidst the price surge.
Additionally, continuous spot outflows have been observed with MOVE, totaling $19 million over four consecutive days, suggesting that market participants are capitalizing on the price rally by offloading their tokens.
If profit-taking persists, MOVE risks relinquishing its recent gains, potentially plummeting to $0.71, with the possibility of further decline to $0.55 if the support level falters. Conversely, a surge in genuine demand could propel MOVE above $0.87, setting a course towards $1.08.