Morpho rallies 8.6% on Bitso integration, outperforms Bitcoin and Ethereum

On the 26th of October, Latin American digital asset platform Bitso launched Bóvedas, allowing users to earn on-chain yield on USDC and MXNB through dedicated vaults curated by Gauntlet on Morpho [$MORPHO].

This opens the Morpho infrastructure directly onto the retail Bitso app. The collaboration to enhance yield opportunities means millions of users can now access Morpho-powered lending markets.

While Bitcoin [BTC] and Ethereum [ETH] faced 24-hour losses of around 0.5%, Morpho has rallied by 8.6%, with a daily trading volume surge of 25%.

Morpho begins a bullish recovery

The Bitso news has likely triggered a spark of bullish sentiment as prices dipped into a local support zone around $2. The altcoin previously approached this psychological round-number level in mid-September and bounced higher.

This bounce did not lead to a bullish trend continuation, that is, a daily session close above $3.

The CMF has consistently been in negative or neutral territory, showing sizeable selling pressure or ambivalence, since September. The lack of buyer dominance helped explain $MORPHO’s inability to push past $3.

Long-term investors and swing traders can look to buy the altcoin in the $1.88-$2.12 golden pocket. A sustained dip below $1.80 would be a sign of trouble for the bulls.

Short-term $MORPHO price action is seller-dominated

The $2.30 area (red) acted as a demand zone earlier in October but has been breached. The recent price gains come within this bearish context. A bounce to $2.30 would likely present a selling opportunity.

Once again, the CMF indicator readings reinforced the idea of a seller-dominated market.

A bullish swing trader bias would be justified if the price can climb back above $2.30 and hold there. Until then, the short-term bias would be bearish, and a deeper correction toward the higher timeframe Fibonacci retracement level at $1.89 would be feasible.

Final Summary

• The Morpho structure on the daily timeframe was bullish, and the Bitso collaboration news sparked an 8% price bounce that went against major crypto asset trends.
• This price bounce needs to reclaim the $2.30 former demand zone, now supply, to signal a true recovery is underway.