MORPHO -3001.04% in 1 Year Amidst Liquidity Constraints and Market Distrust

On OCT 10 2025, MORPHO dropped by 2134.9% within 24 hours to reach $1.339, MORPHO dropped by 3001.04% within 7 days, dropped by 3001.04% within 1 month, and dropped by 3001.04% within 1 year.

The recent plunge in MORPHO is attributed to a combination of technical limitations and a waning investor confidence in its underlying infrastructure. A critical issue identified is the asset’s inability to scale effectively with increased transaction volumes. This has led to network congestion and high latency, which in turn has discouraged institutional and retail participation. Developers have yet to announce a definitive roadmap for addressing these bottlenecks, creating a vacuum of clarity that has exacerbated the sell-off.

The governance structure of MORPHO has also been under scrutiny in recent weeks. Following a failed on-chain vote to adjust the fee distribution model, community sentiment turned sour. Critics argue that the current model disproportionately favors early stakeholders, while newer investors and liquidity providers see little benefit. This has led to a noticeable decline in on-chain activity, including fewer staking events and lower lock-up durations, further signaling disengagement.

Technical analysis of MORPHO’s chart has shown a prolonged bearish trend, with the asset failing to break above its 50- and 200-day moving averages. The RSI has remained in oversold territory for an extended period, indicating a lack of momentum from buyers. A key concern for traders is the lack of clear support levels that might attract stabilizing buy activity. Without a catalyst—such as a major protocol update or a strategic partnership—there is little indication of a near-term reversal in price direction.

A backtesting hypothesis has been proposed to evaluate the effectiveness of a potential trading strategy based on the current technical indicators. The strategy focuses on utilizing moving average crossovers and RSI signals to identify short-term reversal points. Historically, these signals have shown mixed reliability in volatile markets, particularly in assets with low liquidity. The backtest would simulate trades entering the market when RSI hits oversold levels and when the short-term moving average crosses above the long-term one. The exit criteria would trigger at the first sign of bearish divergence or when the asset fails to maintain a key price level.