- Morpho is expected to continue its uptrend and sally past the $3.6 local resistance.
- The lower timeframe momentum and sentiment were firmly bullish, and a dip would be a buying opportunity.
Morpho [MORPHO] was trading at $3.38, at press time. It made a new all-time high at $3.61 on the 31st of December. In the short term, the $3-$3.2 zone is expected to serve as a demand zone in case of a retest.
Bitcoin [BTC] did not yet show signs of bullish strength in the lower timeframes. A sustained BTC drop below $91.5k could hurt MORPHO’s bullish chances, while a BTC recovery would bolster buyer sentiment.
MORPHO tests the 23.6% extension, set for new highs
Source: MORPHO/USDT on TradingView
On the 12-hour chart, the market structure of MORPHO appeared strongly bullish. In December, buyers struggled with the $3.19 resistance level and attempted multiple breakouts. Buyer dominance was evident on the OBV, which showed a steadily rising graph.
The sustained buying pressure succeeded in pushing Morpho to new highs, reaching $3.61 before falling to $3.38 at press time. The MACD indicated upward momentum without showing bearish divergence or signs of an overextended market.
The next Fibonacci extension targets are $4.24 and $4.9.
