At the time of writing, Morpho [MORPHO] was priced at $3.38, having recently reached a new all-time high of $3.61 on December 31st. Analysts anticipate that the $3-$3.2 range could act as a significant support zone in the event of a retest in the near term.
Concerning Bitcoin [BTC], there are no visible indications of bullish momentum on shorter timeframes. If BTC dips below $91.5k, it might negatively impact MORPHO’s bullish prospects. Conversely, a BTC recovery could enhance buyer confidence.
Examining MORPHO’s 23.6% Extension Test and Potential Highs
Upon scrutinizing the 12-hour chart, MORPHO’s market structure appears notably bullish. Throughout December, buyers faced resistance at $3.19, leading to multiple breakout attempts. The On-Balance Volume (OBV) revealed a continuous upward trend, showcasing buyer dominance.
The sustained buying pressure propelled Morpho to fresh highs, hitting $3.61 before retracing to $3.38 currently. The Moving Average Convergence Divergence (MACD) signaled upward momentum without any bearish divergence, indicating a non-overextended market.
Upcoming Fibonacci extension targets lie at $4.24 and $4.9.
Key Support Levels on Lower Timeframes
The Ichimoku Cloud indicator displayed a bullish cloud, although its thickness has slightly decreased in the last 24 hours. While the momentum from Tuesday has subsided, the overall trend remains decisively bullish.
The crossing of the conversion line (Tenkan-sen) above the baseline (Kijun-sen) confirmed the prevailing bullish trend. These lines may function as dynamic support levels, with $3.18 and $3.28 identified as immediate supports at this juncture.
Open Interest (OI) surged significantly on December 31st as MORPHO breached the $3.2 resistance level. This rally was accompanied by considerable speculative interest, signaling optimistic sentiment among traders.
Although OI decreased from $56.57 to $53.73 million over the last 24 hours, indicating a somewhat subdued futures interest, the overall outlook for MORPHO remains strongly bullish. A potential move towards the $3-$3.2 range could present a compelling buying opportunity.
Disclaimer: The information provided is the writer’s personal opinion and should not be construed as financial, investment, or trading advice.