How L1 Upgrade Movement Strengthens MOVE Growth and Restores Investor Interest

Cryptocurrency Movement [MOVE] shows a significant recovery after a prolonged decline over the past year. The key development was the project’s transition from Ethereum Layer 2 (L2) to a fully independent L1 blockchain, which changed the ecosystem’s growth dynamics. Amid these changes, MOVE’s price demonstrates positive momentum, attracting traders and investors to the project’s potential on the new architecture.

How L1 and Partnerships Drive MOVE Growth

The move to L1 is not just a technical upgrade — it’s a transformation of Movement’s economic model. The project has established partnerships with over 10 DeFi applications actively integrating their tokens and capital into the new network. The most notable deal was with LayerBank, whose ULAB token launch brought approximately $2.3 million in liquidity into the ecosystem, accelerating DeFi development on L1 Movement.

Revenue from these partnerships is directed into a dedicated buyback program for MOVE, positively impacting supply dynamics. The reduction of tokens in circulation creates a natural anti-inflationary mechanism, especially noticeable amid active capital inflows into the ecosystem.

Chain Metrics Confirm Network Activation

Network development on L1 is accompanied by a significant increase in user activity. The number of active monthly addresses rose by 17%, reaching 21,400 — a sign that users have returned to the project after a long lull in December 2024 and January 2025.

Transaction volumes in the network showed impressive growth. Remaining at 50,900 in the previous period, transaction counts over two days increased to 84,900, forming a monthly total of 2.8 million transactions. At the same time, the total number of created addresses approached 570,000, and the number of deployed smart contracts reached 28,837 from 4,710 developers, according to Movement Explorer data.

These indicators demonstrate that the L1 architecture has attracted new developers and users who see potential in an independent network.

Technical Outlook: Is Continued Growth Expected?

On hourly charts, MOVE broke through a long-term downtrend line that had kept the price above for over two months after falling in fall 2024. However, the breakout story is complex. The last significant rally ended on December 25, 2024, when the price touched $1.50, but a sharp pullback followed this peak.

After the pullback, the price gradually stabilized, forming current resistance around $0.0418. To confirm an uptrend, a breakout above $0.0600 is crucial, which would indicate the formation of a new local high and the resumption of a bullish impulse.

However, technical indicators show mixed signals. The MACD histogram indicates positive momentum consistent with price growth. But the Cumulative Volume Delta (CVD) remains in negative territory at $8.35 million, suggesting that selling volume still outweighs buying volume. This indicates that although bulls have shown initial signs of reversal, sellers still hold the initiative on this timeframe.

Forecast and Outlook

MOVE has shown early signs of recovery after a year of decline, but a definitive reversal confirmation requires changes on higher timeframes. The L1 upgrade provided a technical foundation, while partnerships and the buyback program created a basis for organic activity growth.

The key to success will be the project’s ability to sustain the reversal momentum and attract new developers and users. If MOVE can hold resistance at $0.0418 and break through $0.0600, the L1 upgrade could become a turning point for the project, similar to how successful L1 projects demonstrate long-term growth following strategic network architecture updates.