MORPHO Drops 689.66% Year-to-Date Amid Market Volatility

On OCT 8 2025, MORPHO dropped by 134.91% within 24 hours to reach $1.755, MORPHO dropped by 689.66% within 7 days, dropped by 689.66% within 1 month, and dropped by 689.66% within 1 year.

The sharp decline in MORPHO’s price reflects broader volatility in the crypto market, where sentiment has been shifting toward risk-off assets. MORPHO’s movement over the last 24 hours marks the most intense drop in the past week, compounding a sustained bearish trend. Investors are increasingly cautious as macroeconomic uncertainty persists and liquidity in the sector remains constrained. The price drop has intensified scrutiny on the project’s fundamentals and governance model, with many questioning the sustainability of its market position.

Technical indicators show a consistent breakdown of key support levels over the past month. The Relative Strength Index (RSI) has fallen below 30, indicating oversold conditions, while the Moving Average Convergence Divergence (MACD) has turned negative and continues to trend lower. These signals are typically associated with prolonged downward momentum and suggest limited near-term reversal potential without a significant external catalyst. Market participants are closely watching for signs of stabilization, particularly around the $1.755 level.

Backtest Hypothesis

A proposed backtesting strategy has been introduced to evaluate the performance of a systematic trading approach using the same technical indicators referenced above. The strategy is based on a rules-based entry and exit model that triggers long positions when the RSI rises above 40 and the MACD crosses above the signal line, and exits when the RSI falls below 25 or the MACD crosses below the signal line. This model is designed to capture short-term rebounds while limiting downside exposure during extended bearish phases. The approach assumes a fixed stop-loss at 10% of the entry price to manage risk. By applying this strategy to historical MORPHO price data, analysts aim to assess its viability in similar market conditions and its ability to generate returns in a high-volatility environment.