Morpho (MORPHO), one of the largest lending cryptocurrencies, appears to be showing some bullish momentum in the daily chart.
MORPHO price action has gained steady momentum over the past 24 hours. In fact, the token’s value has seen a 10% daily increase at press time, with significant help from the current active market environment.
As a result, the token’s trading volume reached 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 cryptocurrency.
Structure changes as prices test supply zone
On the daily chart, the structure of Morpho begins to change. The price is now approaching a key supply zone between $1.9 and $2.1.
This level represents a critical test. The zone has proven to be important as it has initiated several bearish rejections in the near past.
Many analysts expect the area to generate potential additional selling pressure, which could potentially limit current momentum. However, sustained buying pressure at this level could change expectations.
Rising open interest rates signal growing confidence
Derivatives data also aligns with this development. The Morpho network’s Open Interest increased by 16%, indicating the arrival of new capital in the market.
In most similar past scenarios, when rising open interest supports an increase in price, it often indicates that new positions are being opened rather than covering short positions. This strengthens the case for a possible bullish continuation.
Can Morpho break the resistance?
However, the setup currently favors a bullish stance. The bulls will only gain confidence once they successfully eliminate the $2.1 supply level.
If rejected at this level of supply, there could be some consolidation.
Morpho is currently seeing positive momentum, trading with good volume and increasing open interest. The setup itself looks positive, but the level of supply is a crucial point.
If the bulls manage to dominate here, there is a chance we will see a breakout. Otherwise, the market could see some consolidation later.
Final summary
- Morpho surged 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.
