Morpho [MORPHO], one of the largest lending cryptocurrencies, appears to be exhibiting some bullish momentum in the daily chart.
MORPHO’s price action has been gaining steady momentum in the last 24 hours. In fact, the token has seen a 10% daily surge in its value at press time, with significant help from the current active market environment.
Consequently, the token’s trading volume has risen to around $58 million, almost doubling in the process. This indicates a significant increase in the number of participants, which also reflects their increased confidence in the cryptocurrency.
Structure shifts as price tests supply zone
On the daily chart, Morpho’s structure is beginning to shift. Price is now approaching a key supply zone between $1.9 and $2.1.
This level represents a critical test. The zone has proved to be significant as it initiated several bearish rejections in the near past.
Many analysts have projected the zone to generate a potential further selling pressure, which could potentially cap the current momentum. However, sustained buying pressure at this level could change the anticipation.
Open Interest rise signals growing confidence
Derivatives data is also aligning with the move. The Morpho network’s Open Interest has climbed by 16%, indicating fresh capital entering the market.
In most similar past scenarios, when rising Open Interest supports a price increase, it often points to new positions being opened rather than short covering. This strengthens the case for potential bullish continuation.
Can Morpho break through resistance?
However, the setup currently favors a bullish position. The bulls will only gain more confidence once they successfully manage to take out the $2.1 supply level.
Should there be rejection at this supply level, there may be some consolidation.
Morpho is currently seeing positive momentum, trading with good volume and growing Open Interest. The setup itself looks positive, but the supply level is a crucial point.
If the bulls manage to dominate here, there is a chance we will witness a breakout. Otherwise, the market may see some consolidation after that.
Final Summary
- Morpho surged by 10% as trading volume doubled to around $58 million in 24 hours.
- Rising Open Interest and strong momentum put the $2.1 supply zone under pressure.
