MORPHO Crypto Surges 20% Amid Bearish Technical Indicators

Despite a risk-off sentiment in the broader crypto market, MORPHO crypto surged up to 20% on February 28, reaching an intraday high of $2.44. This marked a 35% rise from its weekly low and brought its market capitalization to nearly $500 million.

Morpho’s Price Rally and Trading Activity

The recent price rally was accompanied by a surge in trading activity, with daily trading volume doubling from the previous day to over $94 million. This increase in trading volume indicates a significant interest in the altcoin, particularly after its listing on Coinbase.

About Morpho

Morpho is a decentralized, noncustodial lending platform on Ethereum that optimizes lending pools by facilitating direct peer-to-peer interactions. Founded in 2021, the protocol enables overcollateralized lending and borrowing of crypto assets, aiming to provide better interest rates for both borrowers and lenders.

Coinbase Listing and Updates

Most of today’s gains came after Coinbase listed MORPHO on both the Ethereum and Base networks. This listing has historically impacted crypto prices, driving a nearly 30% surge in Popcat’s price after its listing on the exchange. Morpho’s developers also shared updates, including the launch of their smart contracts on multiple blockchains, which have been reviewed by independent auditors and come with a $2.5 million bug bounty.

Potential Correction on the Horizon

Despite the bullish listing announcement, there remains a significant risk for MORPHO traders. According to data, about 95% of MORPHO tokens are held by large investors, and with over 87% of holders currently in profit, many might decide to sell and lock in gains, especially with the broader crypto market looking bearish.

Technical indicators have also flashed bearish signals. On the 1-day MORPHO/USDT price chart, MORPHO remains under the 50-day moving average, suggesting that bears continue to dominate its market.

Tips for MORPHO Traders

Here are some key points to consider:

  • Keep an eye on the broader crypto market sentiment, as it may impact MORPHO’s price.
  • Monitor the 50-day moving average and Supertrend indicator for potential bearish signals.
  • A fall back below the descending trendline at $2 could signal a bearish reversal.
  • If market sentiment improves, MORPHO might rally higher, invalidating the bearish setup.

At press time, MORPHO had already lost some of its daily gains, exchanging hands at $2.26 per coin.

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