MORPHO’s spot trading volume increased by a staggering 52%, reaching $29.77 million in just 24 hours. As expected, the price action reacted instantly to these developments. In fact, it was up 9% at press time, and its daily rise hints at an increase in appetite for the asset among traders.
Typically, an increase in spot volume is a sign of increased interest and participation from market players. Hence the question: could these encouraging signs push altcoins beyond the existing supply zone?
On the way to a key resistance level…
On the daily chart, MORPHO’s momentum pushed its price towards the vicinity of a crucial supply zone: roughly around $2.08.
Supply zones normally represent places where sales activity has historically taken hold. Typically, prices revisit these zones, leading traders to pay close attention to any signs of rejection or breakout.
For MORPHO, the $2.08 supply zone had previously sparked several rejections, making it a key point of interest for investors and traders alike.
If buyers maintain their current pace, the additional volume could give them the power to overcome this hurdle.
Source: TradingView
Morpho’s TVL growth reinforces bullish structure
The altcoin’s rising total value locked (TVL) is another factor supporting a positive outlook.
At the time of writing, its TVL suggested that more money has been flowing into the protocol. This usually refers to 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 in store for MORPHO.
Source: DefiLlama
Breakup or rejection?
MORPHO is at a critical crossroads right now. The $2.08 supply zone is the crucial level to watch. A decisive break above this zone could pave the way for further bullish movement.
On the contrary, if sellers assert themselves at this level, the rally could slow, which could lead to a short-term pullback.
Its price development over the next few months will likely depend on whether the recent increase in spot volume and total value locked can maintain its bullish momentum.
Final summary
- MORPHO rose 9% as spot trading volume increased by 52%, indicating an increase in trader participation.
- A break into the $2.08 supply zone could extend the rally if the momentum holds.