MORPHO +565.76% in 24 Hours Amid Protocol Developments

On OCT 10 2025, MORPHO surged by 565.76% within 24 hours, reaching $1.438, before experiencing a sharp reversal in the subsequent week. The dramatic price movement followed a series of major developments in the MORPHO protocol, including the announcement of its cross-chain interoperability upgrade and the integration of on-chain governance features.

The protocol upgrade, which was rolled out over the past few weeks, marks a significant step toward MORPHO’s broader vision of becoming a decentralized infrastructure for modular blockchain applications. The upgrade enables seamless asset transfers across multiple chains and introduces a native staking mechanism for token holders. Developers have emphasized that these updates enhance MORPHO’s scalability and reduce transaction costs, thereby attracting increased developer and enterprise adoption.

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The integration of on-chain governance further empowers token holders to participate in key decision-making processes, such as protocol upgrades and treasury allocations. This move is intended to align incentives between the protocol and its community, fostering a more transparent and decentralized ecosystem. MORPHO’s team also announced a partnership with a leading blockchain analytics firm to improve data transparency and user onboarding.

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From a technical perspective, the 24-hour price surge was supported by a bullish breakout from a multi-week consolidation pattern. Traders noted increased liquidity and a growing number of multi-chain wallet addresses holding MORPHO tokens. However, the subsequent decline over the next seven days indicated significant short-term profit-taking and volatility concerns among market participants.

Backtest Hypothesis

A backtesting strategy was proposed to evaluate the potential of MORPHO under varying market conditions. The strategy focuses on using a combination of RSI and MACD indicators to identify entry and exit points. When the RSI crosses below 30, signaling oversold conditions, and the MACD line crosses above the signal line, the strategy triggers a buy signal. Conversely, a sell signal is triggered when RSI crosses above 70 and the MACD line crosses below the signal line.

This approach was tested against historical price data from the past year, including the recent price spike. The backtest aimed to determine whether the protocol’s updates correlated with sustained bullish momentum or if the sharp price increases were followed by equally sharp corrections. The results of the backtest are expected to provide insights into the efficacy of using technical indicators in conjunction with fundamental protocol developments.

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