How MORPHO’s 10% price rally could turn into a full trend reversal

Morpho [$MORPHO] attracted renewed buying interest after posting a 10% daily gain and climbing to $1.93 at press time. Trading activity strengthened alongside the advance, with 24-hour volume rising 65.3% to $34.51 million.

The recovery followed a sharp bounce from recent lows and pushed the token closer to a major resistance zone that traders have monitored closely. Market participation expanded as the price approached the psychological $2.00 level, suggesting that speculative interest returned after several sessions of weakness.

Spot order flow finds its balance

Order-flow data reflected improving conditions beneath the surface despite the market’s recent volatility.

The 90-day Spot Taker CVD moved away from earlier seller-dominant readings and approached a neutral level, indicating that aggressive buying and selling activity had become more balanced. This shift indicated that the persistent sell-side pressure seen during previous declines had eased considerably.

As a result, $MORPHO‘s recovery developed without facing the same degree of order-flow resistance that constrained earlier rallies. Market participants appeared more willing to transact on both sides, creating a healthier trading environment.

Such conditions often support price stabilization and allow sentiment changes to exert a greater influence on direction. If aggressive buyers eventually gain control of the order book, $MORPHO could strengthen its recovery and build enough demand to challenge overhead resistance.

Can $MORPHO reclaim the $2.07 barrier?

Price structure improved significantly after $MORPHO rebounded from the $1.647 support level and returned toward the middle of its established trading range.

The recovery carried the token to around $1.91, placing it directly beneath the key $2.07 resistance zone highlighted on the chart. At the time of writing, the RSI also recovered from near-oversold conditions and climbed to 49.24, while its Moving Average stood at 45.99. This shift suggested that bearish pressure weakened notably during the latest advance.

Unlike previous rebounds that faded quickly, this recovery developed alongside stronger trading activity and improving market participation. Even so, RSI remained below the bullish threshold of 50, indicating that buyers still needed additional strength before confirming a broader trend reversal.

If $MORPHO breaks above $2.07, the chart could open a path toward the next major resistance at $2.413. Failure to clear that level could encourage another retest of lower support zones.

Funding sentiment improves despite staying negative

Derivatives positioning showed signs of stabilization even though sentiment had not fully turned bullish. $MORPHO’s OI-Weighted Funding Rate remained negative at -0.0013% as of writing, indicating that short positioning still held a slight advantage.

Nevertheless, the broader trend revealed a notable improvement from the deeply negative readings recorded earlier in June. Short-side conviction gradually eased as price recovered from recent lows and moved back toward resistance. This change suggested that traders reduced bearish exposure despite keeping overall positioning cautious.

Several negative funding spikes appeared throughout the chart, yet the latest readings no longer reflected the extreme pessimism seen previously. Such improvement often signals that market participants have started reassessing downside expectations.

If Funding Rates continue to recover toward neutral territory, derivatives sentiment could begin supporting the ongoing price recovery rather than acting as a headwind.

Conclusively, $MORPHO strengthened considerably as volume surged and technical conditions improved from recent lows.

Spot order flow also stabilized after the 90-day Spot Taker CVD moved toward a neutral reading, signaling that earlier selling pressure had eased. Although funding rates remained slightly negative, they continued recovering from deeper bearish levels.

If buyers reclaim $2.07 and establish support above that level, $MORPHO could advance toward $2.413. Otherwise, failure to sustain the recovery may keep the token trading within its broader range.

Final Summary

• $MORPHO recovered strongly from support while trading activity expanded significantly.

• Seller dominance persisted, though funding sentiment showed gradual improvement.