MORPHO hits $3.61: Could THIS new support be a buyer’s opportunity?
MORPHO set a new all-time high at $3.61 and was likely to push beyond $4 in the coming days
- Morpho is expected to continue its uptrend and sally past the $3.6 local resistance.
- The lower timeframe momentum and sentiment were firmly bullish, and a dip would be a buying opportunity.
Morpho [MORPHO] was trading at $3.38, at press time. It made a new all-time high at $3.61 on the 31st of December. In the short term, the $3-$3.2 zone is expected to serve as a demand zone in case of a retest.
Bitcoin [BTC] did not yet show signs of bullish strength in the lower timeframes. A sustained BTC drop below $91.5k could hurt MORPHO’s bullish chances, while a BTC recovery would bolster buyer sentiment.
MORPHO tests the 23.6% extension, set for new highs
On the 12-hour chart, the market structure of MORPHO appeared strongly bullish. In December, buyers struggled with the $3.19 resistance level and attempted multiple breakouts. Buyer dominance was evident on the OBV, which showed a steadily rising graph.
The sustained buying pressure succeeded in pushing Morpho to new highs, reaching $3.61 before falling to $3.38 at press time. The MACD indicated upward momentum without showing bearish divergence or signs of an overextended market.
The next Fibonacci extension targets are $4.24 and $4.9.
Lower timeframe support zones to watch
The Ichimoku Cloud indicator showed a bullish cloud, but its thickness has decreased in the past 24 hours. The momentum from Tuesday has not been sustained in recent hours, but the trend remains strongly bullish.
The conversion line (Tenkan-sen) crossed above the baseline (Kijun-sen), confirming the bullish trend. These lines can also act as dynamic support levels, with $3.18 and $3.28 highlighted as imminent supports, at press time.
The Open Interest(OI) picked up strongly on the 31st of December. The rally beyond the $3.2 resistance was accompanied by high speculative interest and signaled bullish sentiment.
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Over the past 24 hours, the OI has dropped from $56.57 to $53.73 million, to reflect the slightly subdued futures interest. Overall, the trajectory for MORPHO remained firmly bullish.
A move toward $3-$3.2 would represent a buying opportunity.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
