MORPHO’s spot trading volume jumped by a staggering 52%, hitting $29.77 million in just 24 hours. As expected, its price action reacted instantly to these developments. In fact, it was up 9% at press time, with its daily surge hinting at a hike in appetite for the asset among traders.
Usually, a rise in spot volume is a sign of heightened interest and greater involvement from market players. Hence, the question – Could these encouraging signs propel the altcoin’s beyond the existing supply zone?
On its way to a key resistance level…
On the daily chart, MORPHO’s momentum pushed its price to the vicinity of a crucial supply zone – Roughly around $2.08.
Supply zones ordinarily represent spots where selling activity has historically taken hold. Typically, prices revisit these zones, prompting traders to pay close attention to any indications of rejection or a breakout.
For MORPHO, the $2.08 supply zone had previously caused several rejections, making it a key point of interest for both investors and traders.
If buyers keep up their current pace, the additional volume might just give them the power to push past this hurdle.
Morpho’s TVL growth bolsters bullish structure
The altcoin’s growing Total Value Locked (TVL) is another factor supporting a positive outlook.
At the time of writing, its TVL suggested that more money has been entering the protocol. This usually alludes to greater user trust and more active participation within the ecosystem.
In most cases, when TVL growth coincides with a hike in trading volume, positive market sentiments are more likely to be amplified.
The same trajectory might be in store for MORPHO.
Breakout or rejection?
MORPHO finds itself at a critical crossroads right now. The $2.08 supply zone is the crucial level to monitor. A decisive breakout above this zone could pave the way for more upward movement.
Conversely, if sellers assert themselves at this level, the rally might slow down, potentially leading to a short-term pullback.
Its price action over the next few months will probably hinge on whether the recent increase in spot volume and total value locked can maintain their bullish momentum.
Final Summary
- MORPHO climbed by 9% as spot trading volume surged by 52%, signalling a hike in trader participation.
- A breakout at the $2.08 supply zone could extend the rally if momentum holds.