Morpho extends losses as weak momentum and seller dominance weigh on price

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Morpho slides 6.9% to $2.08 today

Highlights

$USDC deposits on Morpho reached a record $4.1 billion, with total protocol deposits estimated at $14 to $17 billion.
Morpho expanded its ecosystem via integrations with Coinbase, Robinhood, Bitget, and a SEK-denominated ETP from Valour on Spotlight Stock Market.
Morpho trades below key moving averages with predominantly bearish technical signals; expected range for the next sessions is $1.936 to $2.1825.

Record deposit inflows offset by persistent price pressure

Morpho achieved a new milestone with $USDC deposits reaching a record $4.1 billion on its protocol and total deposits rising to an estimated $14–17 billion, a surge driven in part by integrations with Coinbase and Robinhood according to Cryptonews. The protocol also expanded its reach by supporting a new USDGO stablecoin vault on Bitget, which allows Bitget users to access onchain yield from Morpho vaults, as reported by Thepaypers. In addition, Valour, a subsidiary of DeFi Technologies, launched a SEK-denominated Morpho ETP on Sweden's Spotlight Stock Market, broadening access for traditional market participants, while an October 2026 update from Morpho noted ongoing development of receivables-backed lending products for business borrowers. Despite these positive ecosystem developments, price action has remained under broader selling pressure.

Bearish signals intensify as price tests oversold territory

Technical analysis shows MORPHO trading below the MA-20 and MA-50 on the H1 timeframe, as well as below the MA-200 on the daily chart. The Ichimoku Kijun at $2.1692 stands as immediate resistance. Bearish momentum dominates, with both MACD and ADX indicating a Sell signal and Awesome Oscillator also flashing Sell. While RSI and Stochastic RSI remain neutral, the CCI has moved into oversold territory, hinting at a possible selling exhaustion. Bull/Bear Power is negative, confirming seller dominance on the intraday charts.

Decline risk elevated as upside breakout remains unlikely

For the short term, the expected trading range for MORPHO is between $1.936 and $2.1825. There is a very high probability of a further decline, while the likelihood of an immediate upward bounce is low. If the price holds within this corridor, a sideways movement may emerge; a breakout above resistance could trigger a bullish scenario, whereas a move below the lower band would reinforce a bearish continuation.

Viktoras Karapetjanc, expert at Traders Union, believes Morpho's surge in protocol deposits and new integrations highlight strong underlying adoption momentum. He sees broader ecosystem growth, with new yield and ETP product launches expanding access and appeal. However, near-term price action remains pressured, with clear technical headwinds dominating for now. The analyst expects current developments to provide medium-term support if selling abates. "Morpho's strong fundamentals could set the stage for a future rebound once market sentiment turns, so I'm staying constructive despite the short-term weakness."

Previously it was reported that Morpho exhibited sustained bullish momentum supported by strong protocol activity and persistent technical buy signals. However, with current technicals confirming bearish momentum despite continued ecosystem growth, traders should closely monitor the $1.936 support level as a potential inflection point for further downside or possible stabilization.

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.