MORPHO tests key resistance after Solana launch—Will the breakout hold?
The Morpho $60 forecast and the token being available to trade on the Solana network has helped boost market sentiment.
Morpho [MORPHO] was officially launched on Solana on Thursday, July 9. The lending protocol token is now available for trading on decentralized exchanges like Raydium and Jupiter, and is fully integrated via Sunrise, the official announcement read.
Token prices jumped higher on the back of this news. It has rallied 8.34% in 24 hours, with an uptick in daily trading volume of 105% and an Open Interest hike of just over 18%.
These volume and speculative interest trends point toward the beginning of a short-term upward move. A week ago, it was reported that Standard Chartered forecast a $60 target for Morpho.
The question now is whether that momentum can last.
The long-term MORPHO outlook
The Fixed Range Volume Profile tool and the MORPHO price action since April have both highlighted a similar fact. The altcoin was trading within a range, but could be close to achieving a bullish breakout.
The RSI certainly agreed. The recent upward momentum that drove prices upward by 43%, from $1.59 to the current price of $2.28, began on June 23.
On the other hand, the A/D indicator is struggling to pick itself off from the local lows. The downtrend in the volume indicator since March signaled steady selling pressure even as prices consolidated within a range.
This range extended from $1.64 to $2.28. The volume profile tool showed slightly different Value Area High and Low levels, at $1.59 and $2.13, respectively. In any case, the indicators and range formation showed where a MORPHO reversal could commence from.
Traders’ call to action- Wait
A bullish range breakout and retest of the highs as support has occurred, which should be a clear buying opportunity. Yet, since May, the same scenario has played out twice.
Each time, MORPHO bulls were driven back to the $1.60 local lows before they were ready to drive another rally.
Therefore, even though the short-term momentum and volume indicators favored continued upside, bulls should be wary of a sudden trend reversal.
A daily trading session close above $2.42, the late-May swing high, would be an extremely clear signal of bullish intent. Buyers at current market prices should have clear exit plans in case the attempted breakout reverses, as it did twice before.
Final Summary
- The Morpho $60 forecast and the token being available to trade on the Solana network has helped boost market sentiment.
- The current range formation and volume trends show that the $2.20-$2.42 area is a key supply zone.
