Morpho price trades near $2.0537 support as sellers dominate short-term price action

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Morpho drops 7.14% to $2.35 today

Highlights

Ledger integrated Morpho into its wallet app, enabling users to borrow stablecoins against Bitcoin collateral with self-custody.
Arc, Coinbase, and Robinhood each surpassed $500 million in Morpho-based lending deposits, expanding institutional access and lending volumes.
Morpho trades under short- and medium-term technical pressure with a next 2 to 3 session range of $2.2733 to $2.453 and a lower probability of an upward move.

Mainstream wallet adoption and new lending tools drive institutional inflows amid persistent sell pressure

Ledger's integration of Morpho into its wallet app, announced at the TOKEN2049 conference and reported by Ground, has enabled users to borrow stablecoins such as USDC or USDT against Bitcoin collateral while maintaining self-custody, broadening Morpho's decentralized lending infrastructure to mainstream hardware wallet users. This was accompanied by Arc's launch of Earn Kit, a developer tool for integrating USDC and EURC lending through Morpho vaults, which supported Morpho deposits on Arc exceeding $500 million as of October 8, 2026, according to Tokenpost. Additionally, Coinbase and Robinhood introduced earn products leveraging Morpho's credit network in September 2026, with each platform surpassing $500 million in deposits, further expanding institutional touchpoints and lending volume, as stated by Morpho — though price action has remained under broader selling pressure.

Negative momentum deepens as Morpho tests resistance and exhaustion signals flash

On the hourly chart, Morpho trades below both the MA-20 at $2.4552 and the MA-50 at $2.5244, while maintaining position above the MA-200 on the daily timeframe at $2.0537. The Ichimoku Kijun level at $2.4275 now serves as immediate resistance. Momentum signals remain negative, with MACD and ADX both indicating continued downside. RSI sits at 30.95 (Sell), CCI is oversold, and the Stochastic RSI is neutral, reflecting mixed short-term exhaustion signals. Bull/Bear Power points to intraday seller dominance, while the Awesome Oscillator confirms the prevailing negative trend.

Downside risk dominates as breakout levels define near-term direction

Over the next two to three sessions, Morpho is expected to fluctuate within a range of $2.2733 to $2.453, representing a typical volatility band relative to current levels. The likelihood of an upward move is estimated at 26%, while the probability of a further decline is considerably higher. The baseline scenario projects price retention within this corridor, while a breakout above $2.4275 would be necessary to shift towards a bullish outlook. Should the price break through the support at the lower end of the expected range, fresh downside momentum may emerge.

Viktoras Karapetjanc, expert at Traders Union, sees continued growth potential for Morpho despite recent price weakness. He notes a strong trend of institutional adoption through integrations with Ledger, Arc, Coinbase, and Robinhood. These developments have broadened Morpho's reach and underpinned its liquidity base. The fundamental picture remains robust, even as short-term technicals show downside pressure. "With institutional players now supporting the Morpho ecosystem, I expect this foundational strength to support a medium-term recovery once market sentiment stabilizes."

Earlier, analysts noted that Morpho was experiencing sustained selling pressure and persistent bearish momentum, with a heightened risk of downside continuation. The current analysis affirms this trend amid ongoing negative signals, with a decisive move above $2.4275 required to shift the prevailing bearish outlook.

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.