MORPHO declines as weak momentum weighs on outlook

Traders Union
All News
Crypto
Morpho slides 8.23% to $1.86 today

Highlights

Morpho launched the Midnight protocol on Base, offering fixed-rate, fixed-term lending and intent-based borrowing for expanded onchain credit options.
Despite product innovation targeting both retail and institutional users, Morpho's market price remains under broad selling pressure.
MORPHO/USD shows short- and medium-term bearish momentum, with high volatility and next 2–3 day trading expected between $1.8129 and $2.008, downside favored.

Fixed-term lending launch underwhelms as broader selloff persists

Morpho has officially launched the Midnight protocol on the Base network, according to Crypto. This product introduces fixed-rate and fixed-term lending options, along with features like isolated markets and intent-based lending, which are aimed at expanding Morpho's capabilities for both retail and institutional borrowers. The move reflects an effort to broaden Morpho’s onchain lending ecosystem and add new credit infrastructure, though price action has remained under broader selling pressure.

Bearish momentum persists as key supports hold amid oversold signals

On the technical side, MORPHO/USD is positioned below the MA-20 and MA-50 on the hourly chart, with the MA-200 on the daily timeframe acting as a support reference. The Ichimoku Kijun is set at $2.006, representing immediate resistance, while primary support is observed at $1.8129. MACD and the Awesome Oscillator both generate Sell signals, indicating ongoing downside momentum. ADX registers as Neutral, suggesting the trend’s strength is limited. RSI is at 35.9, with both Stoch RSI and CCI in oversold territory, which typically signals short-term exhaustion among sellers. Bull/Bear Power highlights lingering buyer interest despite the prevailing trend.

Further downside risk elevated as intraday volatility curtails rebound

Looking ahead over the next two to three trading days, MORPHO/USD is expected to fluctuate within a range of $1.81 to $2.01. The probability of a significant upward rebound remains low given continued selling momentum and high intraday volatility, while the likelihood of a further downside move is elevated. A sustained move higher would require a clear breach of resistance at $2.006, whereas a decisive break below $1.8129 would reinforce the current bearish scenario. The base expectation is for consolidation within this typical range band relative to the current price.

Viktoras Karapetjanc, expert at Traders Union, views Morpho’s recent protocol launch as a strategic move that broadens its role in onchain lending. He sees robust fundamentals and innovative product development supporting longer-term sentiment, despite current price pressure and cautious technical signals. Karapetjanc believes institutional and retail adoption will be critical to spark renewed momentum. "With the Midnight protocol live, any sustained improvement in sentiment could set the stage for a constructive reversal."

Earlier, analysts noted that Morpho’s price remained under broad selling pressure despite signs of underlying bullish momentum and continued ecosystem growth. The latest technical signals and the launch on Base suggest that while downside risk persists, traders should closely monitor for a shift in trend if the $2.006 resistance is retested amid any renewed buyer interest.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.