Movement Labs' MOVE Token Surges 4.874% Amid Controversy

Movement's latest price was $0.1967, up 4.874% in the last 24 hours. Movement Labs, the Ethereum Layer-2 modular network, has faced significant challenges recently, particularly surrounding its utility token, MOVE. The company announced the suspension of co-founder Rushi Manche on May 2, citing an ongoing third-party review of governance procedures and market maker-related activities. This decision came after allegations of market manipulation and poor governance practices.

The suspension of Manche follows a series of events that have raised concerns about the project's management and transparency. In April, blockworks reported on market maker misconduct involving the MOVE token on the Binance exchange. The market maker, identified as Web3Port, was accused of selling 66 million MOVE tokens worth $38 million on the day of the token's Binance listing, which was against the wishes of Movement Labs and in breach of their agreement. Binance subsequently banned the market maker, and Movement Labs announced a $38 million MOVE buyback program to return USDT liquidity to the Movement ecosystem.

Coinbase also announced its decision to suspend trading of the MOVE token, citing recent reviews that indicated the token no longer met their listing standards. This move further intensified the situation, as investors and traders reacted to the news with frustration and concern. Popular crypto influencer Ansem, an early investor in the project, expressed his dissatisfaction on X, calling MOVE "the worst investment" he has ever made.

Ask Aime: What's driving the recent surge in Movement Labs' token MOVE?

Internal investigations revealed that 5% of MOVE tokens allocated to Web3Port ended up with rentech, a firm that quickly liquidated its position. Documents from a third-party review alleged that there were incentives to pump MOVE’s fully diluted value (FDV) to $5 billion before dumping tokens on the open market. The agreement stipulated that if this FDV threshold was reached, Rentech could sell and share profits with others, raising suspicions about Manche’s involvement, as he was linked to sharing the agreement.

On April 30, Manche took to X to acknowledge missteps, stating the team “trusted the wrong advisors” and mishandled operations during a turbulent market. Investigations are ongoing into whether Manche or advisors were more deeply involved than previously disclosed. Despite the controversies, some traders see an opportunity to buy the dip, with open interest and trading volume surging in the past 24 hours. The long/short ratio currently stands at 0.9778, with more than $1.3 million worth of short positions liquidated, suggesting some traders are betting on a potential short squeeze or reversal.

Technically, the MOVE/USDT daily chart has shown a persistent downtrend throughout 2025, characterized by lower highs and lower lows. However, the price appears to be stabilizing within a certain range, aligning with the 0.236 Fibonacci retracement level, a zone that could act as short-term support. The MOVE token approaches the upper boundary of a falling wedge pattern, a formation typically viewed as a bullish reversal pattern. A confirmed breakout above this wedge, especially with a daily close above a certain level, could mark a potential trend reversal. Should this breakout occur, Fibonacci extensions point to possible resistance levels at various points. On the flip side, failure to hold above the support zone could result in further downside and continued investor pessimism.