MORPHO Technical Analysis Feb 4

MORPHO is maintaining its uptrend at the $1.27 level while Bitcoin’s sharp decline is pressuring the altcoin market; if it holds above the $1.22 EMA, the $1.90 target could come back into play, but a break below $1.22 increases the risk of a deep correction.

Market Outlook and Current Situation

MORPHO is trading at the $1.27 level with a 2.31% decline over the last 24 hours, while preserving its overall trend structure as an uptrend. The movement in the 1.20-1.36 range on the daily timeframe is supported by $21.43 million in volume, and this volume level indicates interest above the average of recent weeks. While Bitcoin’s decline of up to 5% is challenging altcoins across the market, MORPHO’s hold above EMA20 ($1.22) reflects short-term optimism. This situation once again highlights the resilient structure of DeFi-focused tokens; however, volume concentration in the downside signals that buyers are approaching cautiously.

When examining multi-timeframe (MTF) confluence, we identify a total of 14 strong levels across the 1D, 3D, and 1W charts: 4 supports and 2 resistances on 1D, balanced distribution on 3D, and resistance dominance on 1W. Although this confluence confirms MORPHO’s medium-term uptrend, rising Bitcoin dominance could limit altcoin rotation. Recent volatility triggered a pullback from the $1.36 high, and market participants are now watching the EMA test around $1.22. We recommend detailed chart review via MORPHO Spot Analysis.

Market sentiment is ranging in the neutral-bullish zone, while clusters in the volume profile make the $1.22-$1.30 band critical. If this region holds, rotational buying opportunities may form; otherwise, a scenario of dropping below $1.00 with a broader market correction remains on the table. While MORPHO’s protocol growth and TVL increase provide fundamental support to the technical picture, macroeconomic pressures are dominating.

Technical Analysis: Key Levels to Watch

Support Zones

The strongest support is at the $1.2196 level (score: 74/100); this level stems from daily pivot and EMA20 confluence and aligns with the 24-hour low ($1.20). This zone serves as the first line of defense for the uptrend – if held, reaction buying could accelerate. The second critical support is at $1.0480 (score: 65/100), aligned with weekly lows and coinciding with the Fibonacci 0.618 retracement; this could serve as a stop-loss reference for short-term long positions.

The deeper support at $0.7512 (score: 61/100) is a strong base from the 1W timeframe; 3 support levels converge here in MTF confluence. This level stands out as the primary target in a bearish scenario and is reinforced by past swing lows. The support of these zones by volume profiles enhances MORPHO’s resilience in bottom formation, but BTC pressure could test these levels.

Resistance Barriers

The first resistance is at $1.3052 (score: 74/100), coinciding with the 24-hour high and daily upper band; a breakout could turn short-term momentum bullish. This level is the first hurdle before the Supertrend resistance ($1.57), and volume increase will be decisive here. The second barrier at $1.4648 (score: 63/100) is strengthened by a swing high from the 3D timeframe; breaking it would open the door to medium-term targets ($1.90+).

On 1W, 4 resistance concentrations cap the upper band at the $1.57 Supertrend. These barriers will test buyer strength; breakouts without volume may not be sustainable. We recommend checking futures charts for MORPHO Futures Analysis.

Momentum Indicators and Trend Strength

RSI (14) is balanced at 54.65 in the neutral zone; no overbought/oversold conditions, signaling consolidation. Holding above 50 supports the uptrend, while a drop below 40 indicates momentum loss. The MACD histogram is positive and maintaining a bullish crossover; persistence above the signal line encourages short-term buying, but divergence risk exists.

EMA structure is bullish: Price is above EMA20 ($1.22) and approaching EMA50. Supertrend is giving a bearish signal and highlighting the $1.57 resistance – this contradiction shows weakening trend strength. In MTF, 1D uptrend with 1W flattening tendency; ADX around 25 confirms a medium-strength trend. Overall momentum could strengthen if support holds; otherwise, bearish divergences will trigger.

OBV volume indicator is stable, but declining on down days limits momentum. This picture reflects MORPHO’s effort to preserve its uptrend, but increased volatility is expected.

Risk Assessment and Trade Outlook

From the current $1.27 price, the bullish target is $1.9055 (score 25), offering a risk/reward ratio of approximately 1:2.5 – attractive with a stop at $1.2196 support. In a bearish scenario, the $0.7512 target (score 22) carries deep downside risk with 1:3 R/R. Volatility is high, so position sizing is critical; a 1-2% risk rule is recommended.

Positive outlook: Break above $1.3052 opens the $1.46 and $1.90 path, volume increase required. Negative: Break below $1.22 pushes to $1.04 test, accelerated by BTC influence. Medium-term uptrend remains valid, short-term consolidation likely. Risks include liquidity squeezes and lack of news flow; balanced portfolio essential.

Bitcoin Correlation

With Bitcoin down 5.04% at $74,210 entering a downtrend, altcoins like MORPHO show high correlation (0.85+%). BTC Supertrend is bearish and dominance rise is triggering capital outflow from altcoins. BTC supports at $72,946 (first test), $61,211, and $55,085 are critical; break below $72k pushes MORPHO to $1.04 support.

BTC resistances at $75,484, $77,791, and $89,425; recovery above $75k could ignite an altcoin rally, sending MORPHO to $1.46. As long as BTC downtrend continues, altcoins remain cautious; dominance above 55% increases selling pressure. Even if MORPHO’s relative strength rises, BTC movements will remain decisive.