Morpho selloff slows amid oversold conditions limiting further downside

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Morpho drops 7.01% to $2.54 today

Highlights

Morpho enabled loans using tokenized Coinbase shares as collateral on Base, expanding options for more users.
Circle's Arc blockchain chose Morpho as its main lending protocol, facilitating over $150 million in collateralized loans.
Morpho trades below key moving averages with all momentum signals negative, projected to range from $2.3718 to $2.7202 next session.

Protocol expansion and institutional flows temper selling pressure

Morpho has enabled support for loans backed by tokenized Coinbase shares on the Base blockchain, broadening its available collateral options and opening the protocol to a wider user base, according to Diariobitcoin. This technical expansion increases lending flexibility and enhances utility for both retail and professional users. Additionally, Circle's Arc blockchain launched with Morpho as its primary lending protocol, processing over $150 million in collateralized loans as reported by Cryptobriefing, establishing Morpho as a critical partner for institutional stablecoin-backed borrowing. These positive developments have emerged amid ongoing selling pressure in price action.

Sustained sell momentum as resistance intensifies across technical levels

MA-20 at $2.6283 and MA-50 at $2.5638 now act as immediate resistance levels above the current price, while the long-term MA-200 at $1.9826 serves as key support. The Ichimoku Kijun lies at $2.6755, placing additional resistance overhead. All key momentum signals—MACD, ADX, and the Awesome Oscillator—indicate a sustained sell bias. RSI is at 42.03 and remaining in the sell region, with both Stoch RSI and CCI now reflecting oversold conditions. Bull/Bear Power readings confirm persistent intraday seller dominance.

Bearish bias dominates short-term outlook as rebound odds fade

Over the next trading day, MORPHO is likely to fluctuate within a volatility band of $2.3718 to $2.7202. There is a 36% probability of an upward move and a 64% chance of further declines, suggesting limited odds for a near-term rebound. If price reclaims $2.6755, this could trigger a bullish scenario, while a drop below $2.3718 may accelerate downside momentum.

Viktoras Karapetjanc, analyst at Traders Union, sees Morpho’s recent integration of tokenized Coinbase shares and a major institutional blockchain partnership as pivotal steps in its evolution. He notes these developments significantly broaden Morpho’s utility and appeal at both retail and institutional levels. However, the analyst acknowledges that technical signals point to persistent downside pressure in the near term. Karapetjanc believes sustained buyer interest could emerge if key resistance levels are reclaimed. "I am constructive on Morpho’s fundamental trajectory, but advocate patience until price action confirms renewed demand," he says.

Earlier, analysts noted that Morpho’s expansion into stock-backed lending was supporting a positive technical outlook for the protocol. However, with price action now under sustained sell pressure and key momentum signals aligning to the downside, traders should closely monitor $2.6755 as a potential inflection point should conditions shift.

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.