//On touch listener

                image1.setOnTouchListener(new View.OnTouchListener() {
			@Override
			public boolean onTouch(View v, MotionEvent event) {
				layoutParams = (LayoutParams) image1.getLayoutParams();
				switch (event.getAction()) {
				case MotionEvent.ACTION_DOWN:
					break;
				case MotionEvent.ACTION_MOVE:
					int x_cord = (int) event.getRawX();
					int y_cord = (int) event.getRawY();

					if (x_cord > windowwidth) {
						x_cord = windowwidth;
					}
					if (y_cord > windowheight) {
						y_cord = windowheight;
					}

					layoutParams.leftMargin = x_cord - 25;
					layoutParams.topMargin = y_cord - 75;

					image1.setLayoutParams(layoutParams);
					break;
				default:
					break;
				}
				return true;
			}
		});


.Xml

  <LinearLayout xmlns:android="http://schemas.android.com/apk/res/android"
        android:layout_width="match_parent"
        android:layout_height="300dp"
        android:background="#888"
        android:orientation="vertical"
         >

        <ImageView
            android:id="@+id/imageView2"
            android:layout_width="wrap_content"
            android:layout_height="wrap_content"
            android:src="@drawable/ic_launcher" />

        <ImageView
            android:id="@+id/imageView1"
            android:layout_width="wrap_content"
            android:layout_height="wrap_content"
       android:layout_marginTop="10dp"
    android:layout_gravity="center"
            android:src="@drawable/image" />
    </LinearLayout>