MORPHO’s spot trading volume increased by a staggering 52%, reaching $29.77 million in just 24 hours. As expected, price action reacted immediately to these developments. In fact, it was up 9% at the time of writing, with its daily rise indicating growing appetite for the asset among traders.
Usually an increase in spot volume is a sign of increased interest and greater participation from market players. So the question arises: Could these encouraging signs push the altcoin beyond its current supply zone?
On the way to an important resistance level…
On the daily chart, MORPHO’s momentum has pushed its price near a key supply zone: roughly around $2.08.
Supply territories generally represent points where sales activity has historically occurred. Typically prices revisit these areas, allowing investors to be wary of any signs of rejection or breakout.
The $2.08 supply zone for MORPHO had previously sparked multiple rejections, making it a major point of interest for investors and traders alike.
If buyers maintain their current pace, additional volume could give them the strength to overcome this hurdle.
Source: TradingView
Morpho’s TVL growth supports bullish structure
altcoins Growing Total Value Locked (TVL) is another factor supporting the positive outlook.
At the time of this writing, TVL was claiming that more money was entering the protocol. This often means greater user trust and more active participation in the ecosystem.
In most cases, when TVL growth coincides with an increase in trading volume, positive market sentiment is more likely to strengthen.
The same trend may be awaiting MORPHO.
Source: DefiLlama
Breakout or rejection?
MORPHO currently finds itself at a critical crossroads. The $2.08 supply zone is the critical level to watch. A decisive break above this zone could pave the way for further upside.
Conversely, if sellers assert themselves at this level, the rise could slow, potentially leading to a short-term pullback.
Price action over the next few months will likely depend on whether the recent increase in spot volume and total value locked can sustain the bullish momentum.
Final Summary
- MORPHO rose 9% as spot trading volume rose 52%, signaling increased trader participation.
- If the momentum continues, a breakout of the $2.08 supply zone could extend the uptrend.
