MORPHO spot trading volume jumped 52%, reaching $29.77 million in just 24 hours. As expected, price developments reacted instantly to these developments. In fact, it was up 9% at press time, with its daily rise suggesting an increase in traders’ appetite for the asset.
Usually, an increase in spot volume is a sign of increased interest and involvement from market participants. Hence the question: could these encouraging signs propel altcoins beyond the existing supply zone?
Heading towards a key resistance level…
On the daily chart, MORPHO’s momentum has pushed its price close to a crucial supply zone – around $2.08.
Sourcing areas generally represent locations where sales activity has historically been located. Typically, prices revisit these areas, prompting traders to pay close attention to any indications of rejection or breakouts.
For MORPHO, the $2.08 supply zone had already caused several rejections, making it a key point of interest for both investors and traders.
If buyers maintain their current pace, the additional volume may well give them the power to clear this hurdle.
Morpho’s TVL growth reinforces bullish structure
The altcoin’s growing total value locked (TVL) is another factor supporting a positive outlook.
At the time of writing, its TVL suggested that more money had been introduced into the protocol. This generally hints at greater user trust and more active participation within the ecosystem.
In most cases, when TVL growth coincides with an increase in trading volume, positive market sentiments are more likely to be amplified.
The same trajectory could be reserved for MORPHO.
Escape or rejection?
MORPHO currently finds itself at a critical crossroads. The $2.08 supply zone is the crucial level to watch. A decisive break above this zone could pave the way for further upward movement.
Conversely, if sellers assert themselves at this level, the rally could slow, potentially leading to a short-term pullback.
Price action over the coming months will likely depend on whether the recent increase in spot volume and total value locked maintains its upward momentum.
Final summary
- MORPHO climbed 9% as spot trading volume jumped 52%, signaling increased trader participation.
- A breakout of the $2.08 supply zone could extend the rally if momentum holds.
