DeFi token unlock pressures Morpho price near $2.4057 support

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Morpho drops 7.28% to $2.58 today

Highlights

Circle is offering Bitcoin-backed USDC borrowing for institutional clients through Circle Mint, with Morpho as the initial supported DeFi protocol on Arc and Ethereum networks.
Institutional capital can now access Morpho's decentralized credit infrastructure, but sector risk may rise due to a pending $391 million DeFi token unlock next week.
Morpho trades below key short-term moving averages, with technical indicators signaling pronounced intraday downside and an expected price range of $2.4057 to $2.7643.

Institutional capital eyes Morpho amid mounting sector unlock risk

Circle has launched Bitcoin-backed USDC borrowing for institutional clients via Circle Mint, designating Morpho as the first supported lending protocol on Arc and Ethereum networks, according to Cryptoslate. This deployment opens Morpho's decentralized credit infrastructure to institutional capital and may increase real-world protocol exposure, though price action has remained under broader selling pressure. Additional risk in the sector comes from a scheduled $391 million DeFi token unlock next week, as reported by Diariobitcoin, which could heighten selling pressure across decentralized finance assets. Circle's statement on further protocol integrations, including Aave, underscores a pattern of ecosystem expansion.

Downward momentum prevails as hourly signals confirm resistance

On the hourly chart, MORPHO remains below the MA-20 at $2.6698 and MA-50 at $2.6705, but continues to hold above the MA-200 at $1.9906. The Ichimoku Kijun at $2.7115 forms the immediate resistance level. Momentum readings remain weak: MACD is on Sell and ADX reflects a neutral trend; oversold signals are present on the RSI, Stoch RSI, and CCI. Bull/Bear Power indicates sellers dominate intraday momentum, and the Awesome Oscillator reinforces this downward pressure.

Bearish continuation risk as volatility frames likely price range

Looking ahead, MORPHO is likely to consolidate between $2.4057 and $2.7643 over the next two to three trading days, mirroring realized volatility. There is a 76% chance of further downside, while the probability of a near-term upward move stands at 24%. A sustained advance above $2.7115 would suggest renewed buying interest, while a drop below $2.4057 would signal continuation of the current bearish momentum.

Viktoras Karapetjanc, expert at Traders Union, sees the Circle launch as an important boost for Morpho’s institutional credibility. He believes real-world protocol exposure is rising despite current selling pressure and sector risks from the scheduled DeFi token unlock. Downside momentum prevails in the short term, but ecosystem expansion remains positive for the longer view. "Institutional adoption and ongoing integration signal robust fundamentals, so I remain optimistic on Morpho’s medium-term potential."

Previously it was reported that Circle selected Morpho as the first supported protocol for its institutional Bitcoin-backed USDC borrowing service, signifying the integration of Morpho into institutional DeFi lending ecosystems. In the context of continued broad selling pressure and a looming major DeFi token unlock, traders should monitor whether MORPHO can maintain support above $2.4057 as sector-specific risks intensify.

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.