Why is Morpho price down today?

Traders Union
All News
Crypto News
Morpho slides 11.81% today to $1.896

Highlights

Morpho secured $175 million in funding led by Paradigm and a16z crypto, reaching a valuation of approximately $2 billion.
Total deposits and value locked surged to over $11 billion and $6 billion respectively, supporting expansion into institutional and credit products.
MORPHO/USD faces short-term selling pressure but likely holds within a $1.61 to $2.09 range this week, with oscillators signaling potential for near-term upside if resistance breaks.

Institutional backing fuels growth, but price remains under broad pressure

Morpho, a decentralized lending protocol, completed a $175 million funding round co-led by Paradigm, a16z crypto, and Ribbit Capital, with strategic participation from Apollo Funds, Circle Ventures, and VanEck. The raise valued the protocol at about $2 billion and increased its deposits and total value locked, now reported at more than $11 billion and $6 billion respectively. The capital was allocated to support technical and commercial integrations, infrastructure for credit products, and institutional expansion, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees Morpho trading under key short-term moving averages and registering a sharp 11.81% daily loss. He notes that although the protocol attracted high-profile funding, the price continues to face persistent selling forces and technical headwinds. The expert observes that a failure to reclaim $2.01 resistance would reinforce downside risks, while $1.61 remains a possible pivot for further declines. He remains cautious due to conflicting signals across timeframes and limited reaction to positive news. "Despite the capital injection, current momentum points to vulnerability as buyers fail to defend near-term levels — I see risks outweighing opportunities at these prices."

Viktoras Karapetjanc, expert at Traders Union, highlights institutional confidence flowing from the $175 million raise and strong backing by top venture names. He argues that the robust growth in deposits and total value locked underscores positive sentiment and ongoing adoption traction. The bullish structure, anchored by support at the 200-day, positions Morpho for recovery if resistance at $2.01 is breached. Karapetjanc sees multiple scenarios for price appreciation in the near future. "With fundamentals intact and market support building, I expect Morpho to resume its uptrend soon — further growth is likely."

Mixed timeframe signals as resistance limits upside from sellers

MORPHO/USD is trading below the 20-day ($1.9860) and 50-day ($1.9768) moving averages but above the 200-day ($1.5861), indicating current short-term pressure from sellers, a mixed medium-term setup, and ongoing longer-term support. The nearest dynamic resistance is at the Ichimoku Kijun level ($2.0010), with the 200-day average providing substantial support.

Earlier, analysts noted that Morpho was exhibiting uncertain near-term momentum within a defined volatility band, underscored by institutional support. The current analysis adds stronger conviction for a potential bullish move, with technicals now assigning higher odds to an upside breakout if $2.01 resistance is surpassed in the coming days.

Source of Data: MORPHO Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.