MORPHO +230.1% in 24 Hours Amid Protocol Upgrades and Token Reallocations

On OCT 12 2025, MORPHO surged by 230.1% within 24 hours to reach $1.641, driven by a series of protocol upgrades and strategic token reallocations announced by the development team. The updates focused on enhancing the platform’s capital efficiency and expanding its lending and borrowing capabilities across multiple blockchain networks. These changes are expected to reduce slippage for large transactions and increase liquidity provider incentives.

The development team released a detailed roadmap outlining the implementation of new smart contracts and cross-chain compatibility features. A key component of the update included the integration of a dynamic fee adjustment mechanism, which automatically modifies borrowing rates based on real-time supply and demand. Additionally, the team announced a token reallocation plan that would shift a portion of the circulating supply into staking and governance pools, aiming to boost long-term utility and engagement.

Technical indicators have reflected growing bullish sentiment, with MORPHO forming a breakout pattern above key resistance levels and maintaining strong momentum as measured by the Relative Strength Index (RSI). Analysts project that the upgrade-driven buying activity could reinforce the asset’s resilience against broader market headwinds.

Backtest Hypothesis

The backtesting strategy evaluates the effectiveness of a signal-based entry and exit model using RSI and moving average crossovers, derived from the same technical indicators referenced in the preceding analysis. The hypothesis assumes a buy signal is triggered when RSI dips below 30 and the 20-period moving average crosses above the 50-period line. A sell signal is initiated when RSI climbs above 70 and the 20-period moving average falls below the 50-period line.

This strategy is designed to capture short-term volatility while filtering out noise by relying on confirmed trend changes rather than raw price fluctuations. The backtest period would span the last 90 days, incorporating the recent protocol updates to assess whether the signals align with the observed price action. If the model generates a consistent profit margin over this period, it could suggest the strategy is well-aligned with the fundamental and technical dynamics of the MORPHO ecosystem.