MORPHO: As demand strengthens with $10.24B TVL, can price retest $3?

MORPHO’s demand outlook strengthened after seed investors received another $19.76 million worth of allocation as the token continued defending the key $2 region.

The allocation came in as MORPHO remained above the $2 level for over one month. During the August period, the bulls briefly drove the price toward the $3 region before retreating lower.

However, seed investors still continued acquiring tokens despite the price pullback, keeping acquisition activity central to MORPHO’s demand outlook. 

The investor allocations, however, represented only one part of the broader fundamental outlook. The growing capital across Morpho’s protocol also added another layer of support.

Arc and TVL growth expand Morpho’s utility 

At the time of press, Morpho’s Total Value Locked had surged to $10.239 billion, extending a rapid expansion visible since August. The increase pushed TVL beyond levels maintained throughout the year 2026.

Furthermore, Arc Mainnet went live with the infrastructure spanning lending, borrowing, liquidity, payments, settlement, and tokenized assets. The integration of Morpho placed its lending infrastructure within the Arc’s growing financial ecosystem.

Arc also launched infrastructure targeting institutional markets and agentic economic activity. This would help Morpho gain exposure to the potential lending activity beyond its existing ecosystem.

Together, the combination carried broader significance than either development alone. The rising TVL reflected capital already committed across Morpho, while Arc widened potential avenues for utility.

Top traders stay bullish on MORPHO 

At the same time, Binance top traders maintained substantially long exposure despite MORPHO’s reversal from its August highs. The long positions accounted for 69.51%, while shorts represented only 30.49%.

According to CoinGlass, the Binance Top Trader Long/Short Ratio stood at 2.28. Therefore, the long positioning remained more than twice the short exposure among these traders.

More importantly, the top traders preserved this imbalance as MORPHO traded much closer to the $2 support  than $3 resistance. Also, this positioning aligned with the fundamental demand signals rather than the recent price correction.

For now, however, positioning remained tilted towards a price recovery. MORPHO’s technical structure outlook offered the clearest test of whether that conviction could translate into a price expansion.

Can MORPHO turn $2 into a launchpad? 

At press time, MORPHO traded at $2.119, keeping the price above the nearby $2 support zone following its prolonged decline from the August highs.

Notably, the token had reached the descending support trendline while trading near the horizontal support area. A successful breakout above the trendline would strengthen the chances for a price recovery towards the $2.304 supply area.

Additionally, the RSI had reversed to 40.68 after hitting the 39.38 support region. The indicator suggested that bulls had not regained strong control, but the downside pressure had stopped intensifying during the latest session.

Ultimately, if MORPHO confirms a trendline breakout, the $2.304 level would become the immediate recovery target. A sustained strength from the bulls could then expose the $2.611 resistance, followed by the August’s $3 high.

Final Summary

• Seed allocations and $10.24 billion TVL strengthened demand while top traders remained bullish.
• MORPHO could recover toward $2.61 if weakening selling pressure allows buyers to regain control.