Morpho [MORPHO] surged by 17.8% in the last 24 hours as traders shifted their focus towards decentralized finance (DeFi) assets.
The overall interest in DeFi also boosted tokens like Ethena [ENA] and Aave [AAVE], setting a positive backdrop for the sector.
This shift directly benefitted MORPHO as traders sought exposure to decentralized lending infrastructure.
Top traders remain cautious amidst the bullish trend
Despite the rally, top traders on Binance maintained a bearish stance during MORPHO’s price surge. Short positions stood at 56.55%, while long positions were at 43.45%.
The Long/Short Ratio dropped to 0.77, indicating a numerical advantage for short positions. This contrasted with MORPHO’s significant gain and increasing trading volume.
Nevertheless, buyers managed to drive MORPHO higher amidst the broader DeFi rotation.
With strong demand at current levels, continued upward momentum could squeeze out short sellers. Conversely, persistent short positions may become more significant as buying activity subsides.
Sellers pose a challenge to the demand surge
Selling pressure persisted in both Spot and Futures markets despite MORPHO’s strong price performance.
The 90-day Spot Taker CVD indicated dominance of taker sells, showing ongoing aggressive selling in spot transactions. Additionally, the Futures Taker CVD also maintained taker-sell dominance, extending the selling pressure to leveraged trading.
Nevertheless, MORPHO continued to rally by double digits as trading volume surged. Continued participation in the sector could prompt sellers to retreat, especially without a price resurgence.
The $2.929 resistance challenges buyers
On the daily TradingView chart, MORPHO surged past the $2.304 resistance zone but faced rejection at $2.929, where sellers halted further upside.
The pullback retreated the price to $2.774, with $2.304 now acting as crucial support below the breakout level.
RSI peaked at 74.64 post-surge, entering overbought territory due to intense buying pressure. Meanwhile, the RSI average stood at 62.44, reflecting the swift buying momentum during the recent uptrend.
MACD signaled bullish momentum as its line crossed above the signal line, with the histogram remaining positive at 0.088 despite resistance near $2.929.
Maintaining above $2.304 could uphold the breakout structure and pave the way for another attempt at $2.929. Conversely, a failure at the support level may lead to a deeper pullback as overbought conditions prompt profit-taking.
Key Takeaways
- MORPHO’s 17.8% surge was fueled by DeFi rotation and increased trading activity.
- Bearish sentiment and persistent selling pressure could pose challenges above $2.929.
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