MORPHO -1644.05% in 1 Year Amid Regulatory Scrutiny and Trading Disruptions

On OCT 10 2025, MORPHO dropped by 609.97% within 24 hours to reach $1.603, MORPHO dropped by 1644.05% within 7 days, dropped by 1644.05% within 1 month, and dropped by 1644.05% within 1 year.

The sharp decline in MORPHO’s price has been attributed to a recent regulatory investigation launched by global financial authorities targeting decentralized finance (DeFi) protocols. MORPHO, a lending and yield optimization platform built on Ethereum and Arbitrum, is under scrutiny for potential compliance failures related to user anonymity and cross-border transactions. The investigation has triggered immediate liquidity constraints, with multiple exchanges delisting MORPHO tokens pending further clarity from regulators.

Technical indicators show the token is deep in oversold territory, with the Relative Strength Index (RSI) at historically low levels, and the Moving Average Convergence Divergence (MACD) signaling bearish momentum. These metrics, however, have failed to attract significant buying interest amid the uncertainty surrounding the regulatory review.

Backtest Hypothesis

A proposed backtesting strategy aims to evaluate potential entry and exit points based on historical price patterns from January 2024 to October 2025. The approach is built around a moving average crossover system using the 50-period and 200-period Simple Moving Averages (SMA) on a daily timeframe. The signal to enter a short position is generated when the 50 SMA crosses below the 200 SMA, signaling a bearish trend. A stop-loss is placed at the 50% Fibonacci retracement level of the most recent bullish wave, while a take-profit target is set at the 61.8% Fibonacci level in the opposite direction.

This method is tested against the token’s price action during the period of heightened volatility and regulatory risk. Preliminary results suggest the strategy could have captured a significant portion of the downside risk, particularly in the months leading up to the latest drop. The hypothesis remains untested in a live market but is grounded in MORPHO’s historical price behavior and trend dynamics. Analysts project that further regulatory updates could influence the strategy’s effectiveness in real-time execution.