Morpho falls amid continued downward price move and lack of clear buyer support

Traders Union
All News
Crypto
Morpho drops 7.6% to $2.08 today

Highlights

USDC deposits on Morpho reached a record $4.1 billion after growing 40% over the past three months.
New integrations with Coinbase and Robinhood increased accessibility and drove fresh inflows and liquidity to Morpho.
Morpho trades below key moving averages across all timeframes, with technical indicators showing strong bearish momentum and a near-term range of $2.0029 to $2.3907.

Record inflows lift USDC deposits amid selling in price action

USDC deposits on Morpho reached a record $4.1 billion after expanding by 40% over the past three months, as reported by Cryptobriefing. This surge was attributed to new integrations with Coinbase and Robinhood, which drove fresh inflows onto the protocol by increasing accessibility and overall platform liquidity. While the data highlight recent operational growth and user momentum, price action has remained under broader selling pressure.

Bearish momentum confirmed as multi-timeframe resistance holds

On the hourly chart, MORPHO is trading below the MA-20 and MA-50, while on the daily chart, it stays under the MA-200, illustrating multi-timeframe resistance levels. The Ichimoku Kijun sits at $2.1692 and serves as immediate resistance. Momentum readings remain negative, with MACD producing a strong sell signal and ADX confirming a bearish setup. RSI and CCI are both neutral, but Stoch RSI is positioned in the overbought zone, suggesting that caution is warranted for a potential short-term correction. Bull/Bear Power is nearly flat at 0.0064, and the Awesome Oscillator offers no clear bias, indicating a lack of definitive dominance between buyers and sellers.

Downside risk elevated as volatility keeps breakout unlikely

Over the short term, MORPHO is expected to fluctuate within a wide corridor between $2.0029 and $2.3907, representing the typical volatility band relative to current levels. The probability of an upward breakout remains very low, while downward momentum has a higher likelihood of extending, reducing the chance for a sustained rally. A baseline scenario sees price movement contained in the current range; a decisive move above immediate resistance could open up further gains, but a drop below support may trigger prolonged downside pressure.

Viktoras Karapetjanc, expert at Traders Union, notes that Morpho is experiencing strong user and liquidity growth thanks to major integrations, even as the market price trades under pressure. He sees operational expansion as a key support for longer-term sentiment, with fundamental adoption outweighing short-term volatility. The analyst believes that as long as the protocol continues to attract deposits, the foundation remains constructive. "If this momentum in user activity persists, I expect Morpho’s fundamentals to eventually drive a recovery in price action despite current technical weakness."

Previously it was reported that Morpho was experiencing sustained bearish momentum despite significant ecosystem growth and notable protocol integrations. The current analysis confirms this cautious outlook, with persistent technical pressure suggesting traders should monitor for a potential downside move if support below $2.00 fails to hold.

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.