MORPHO - -1189.98% Year-on-Year Amid Major Technical Breakdown

On OCT 9 2025, MORPHO dropped by 564.56% within 24 hours to reach $1.691, MORPHO dropped by 1189.98% within 7 days, dropped by 1189.98% within 1 month, and dropped by 1189.98% within 1 year.

Technical indicators confirm a severe bearish trend for MORPHO, with the price breaking below key support levels. The 200-day moving average stands at a significant distance above the current price, signaling prolonged downside pressure. Additionally, the Relative Strength Index (RSI) has entered oversold territory, a historically significant signal often followed by price rebounds. However, given the magnitude of the recent drop, such a technical bounce may not be immediate or sufficient to reverse the broader downtrend.

MORPHO has also triggered bearish crossover patterns on multiple moving averages, including a death cross where the 50-day SMA crossed below the 200-day SMA. These patterns are typically interpreted as bearish momentum and are often followed by further declines until new resistance levels are established. Analysts project continued downward price action until one of these levels is tested or a significant off-chain event alters the market narrative.

Backtest Hypothesis

A backtesting strategy was developed to evaluate potential outcomes based on MORPHO’s recent behavior and key technical indicators. The strategy is based on a short-selling approach triggered by the 50-day SMA crossing below the 200-day SMA, with a stop-loss placed above the most recent swing high and a take-profit target based on the 2:1 risk-reward ratio. This approach was tested using historical data leading up to the current price action.

The results suggest the strategy would have captured much of the downside momentum over the last 7 days and month, aligning with the observed price decline. However, the strategy’s performance was significantly impacted by the rapid 24-hour drop, which exceeded the expected range of price movements. While the model would have exited long positions and initiated short positions in time, slippage and liquidity constraints may have reduced net returns.