Can Morpho TVL growth lift MORPHO?

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Morpho surges 7.1% to $2.17 today

Highlights

Morpho's total value locked rose approximately $304 million over the past week to $11.4 billion, a 2.7% increase.
The recent capital inflow confirms increasing engagement and market liquidity for the Morpho protocol.
Morpho trades in a sustained bullish trend with strong momentum and is projected to fluctuate between $2.0782 and $2.2766 in the near term.

User inflows and tvl expansion fuel bullish sentiment shift

Morpho's total value locked climbed by approximately $304 million over the past week, reaching around $11.4 billion in a 2.7% increase, according to Tokenpost. This notable inflow of capital points to growing user engagement and confidence in the protocol, which tends to enhance market liquidity and investor interest. The recent expansion of Morpho's TVL has acted as a catalyst for additional demand, reinforcing the positive shift in sentiment among market participants.

Technical signals confirm bullish bias amid consolidation risk

On the hourly chart, MORPHO is trading above its MA-20 at $2.0952 and MA-50 at $2.0787, with price also remaining above the long-term MA-200 at $2.1243. The Ichimoku Kijun provides immediate support at $2.0887. MACD and ADX are both in Buy mode, reflecting robust bullish momentum, while RSI stands at 64.72 and CCI remains on Buy, each indicating continued price strength. Bull/Bear Power shows ongoing buyer dominance in intraday action. Stochastic RSI is Neutral and Awesome Oscillator is steady, suggesting price may consolidate near highs in the short-term rather than enter an overbought reversal.

Sideways action likely as breakout odds favor continued upside

In the short term, Morpho is expected to fluctuate within a range of $2.0782 to $2.2766, reflecting typical volatility relative to current levels. There is a 75% probability of continued upside as momentum supports further gains, while a pullback has a lower likelihood at 25%. The baseline scenario points to sideways consolidation, while a breakout above resistance could unlock rapid gains. Conversely, a break below key support might accelerate selling pressure.

Anton Kharitonov, expert at Traders Union, sees Morpho’s technicals and growing TVL as signs of robust, but potentially overextended, market interest. He notes price strength above moving averages and strong momentum, yet emphasizes the probability of sideways action remains elevated. The analyst believes consolidation is likely unless buyers deliver a decisive breakout above resistance. "As long as price holds above $2.0782, I see a defensive range, but persistence below this level would shift my outlook to cautious and risk-off."

Earlier, analysts noted that Morpho was under sustained selling pressure as technical indicators pointed to a prevailing downtrend despite strong protocol fundamentals. The current market action marks a clear shift in momentum, with traders advised to monitor the $2.0782 support and $2.2766 resistance as pivotal levels for the next decisive move.

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.