Market Overview for Morpho/Tether (MORPHOUSDT) as of 2025-10-08

• Price opened at $1.842 and closed at $1.775 after a 24-hour low of $1.746
• Strong bearish momentum observed with a 3.6% decline on key support tests
• Volume spiked during the early overnight session but declined in the final 6 hours
• RSI dipped into oversold territory at 28, while MACD turned negative and diverged
• Bollinger Bands showed expansion overnight, suggesting rising volatility

Morpho/Tether (MORPHOUSDT) opened at $1.842 on 2025-10-07 at 12:00 ET and closed at $1.775 by the same time on 2025-10-08. The 24-hour candle reached a high of $1.85 and a low of $1.746, showing a bearish bias. The total volume traded was 1,570,875.81 units, with a notional turnover of $2,778,597.54. The price action reflected increased bearish pressure, especially in the overnight session.

Structure & Formations

The 15-minute chart revealed multiple bearish engulfing patterns and a doji at $1.791, signaling indecision. The price tested the key support level at $1.775–$1.776 twice, with a failed rebound observed in the last hour of the session. A descending triangle formation was visible between $1.79 and $1.84, with a potential bearish breakout. The most recent swing high at $1.833 and swing low at $1.746 formed a large bearish range.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages were both in a bearish crossover, with the 20-period line below the 50-period line. The 20SMA hovered near $1.80, while the 50SMA sat around $1.795. On the daily chart, the 50DMA, 100DMA, and 200DMA showed a clear bearish alignment, with the price trading below all three indicators.

MACD & RSI

The MACD histogram turned negative early in the session and remained bearish, with a bearish crossover of the signal line at around 04:30 ET. The RSI dropped to 28 in the last 6 hours, indicating oversold conditions, though no immediate reversal followed. The divergence between price and RSI in the final 15 minutes suggests possible near-term buying interest.

Bollinger Bands

Bollinger Bands expanded overnight from $1.77 to $1.82, indicating heightened volatility. The price closed near the lower band at $1.775, suggesting a possible oversold bounce. A contraction in band width could follow if the price remains range-bound in the next 24 hours.

Volume & Turnover

Volume peaked at 102,595.75 units during the early overnight session as the price broke below the $1.78–$1.79 support zone. Turnover mirrored the volume spikes but declined in the last 6 hours despite continued price weakness. The divergence in volume and price could signal a potential short-covering rally or a bear trap.

Fibonacci Retracements

Applying Fibonacci retracements to the recent swing from $1.85 to $1.746, the 61.8% level resides at $1.768 and acted as a minor support. The 38.2% level at $1.796 was rejected twice, indicating it is a strong resistance. On the 15-minute chart, the 50% retracement level at $1.799 was briefly retested before a bearish continuation.

Backtest Hypothesis

A backtest strategy based on the 15-minute MACD and RSI divergence could offer a short-term trading edge. A sell signal would be triggered when MACD turns negative and RSI drops below 30 with price below the 20SMA. A stop-loss could be placed above the nearest Fibonacci resistance, while a profit target might be the 61.8% retracement level. This approach would capitalize on the observed bearish momentum and divergence, potentially improving risk-adjusted returns if tested over a longer period.