Journalist
Posted:
Key Takeaways
Whale transfers of MORPHO tokens combined with spikes in age consumed showed previously idle tokens were being moved, likely for selling, and a price dip to $2 was possible.
Morpho [MORPHO] has been trending slowly higher since April. The altcoin was up 154% in five months, but was still 48% below its all-time high of $4.17, which it had reached back in January.
Source: Santiment
Santiment data showed that $2 million worth of Morpho was sent to the centralized exchange Bybit in the past 24 hours. This represented 0.3% of the market cap of the asset, which was at $723 million at the time of writing.
Generally, token transfers to exchanges indicate imminent selling pressure. Should Morpho investors be worried of a price pullback?
AMBCrypto found that the on-chain metrics reflected healthy levels of activity, but also came with a note of warning.
Morpho accumulation resumes in September
The supply distribution chart above showed that sharks and whales holding 10k- 1M MORPHO tokens had been selling from mid-July to mid-August.
During this month-long contraction in the supply this cohort held, other batches of MORPHO holders continued to grow in number.
This showed steady buying pressure from shrimp to whale MORPHO wallets, which was an encouraging sight for long-term investors.
The network activity metrics were at relatively healthy levels over the past three months. The daily active addresses jumped higher in July, and has retained that jump as a baseline in the following months.
The network growth, which captures the number of new addresses being created on the network each day, was also at relatively healthy figures over the past six months.
Together, these metrics showed that network activity continued apace regardless of price volatility.
However, the Mean Coin Age and age consumed were closely tied to the age of MORPHO tokens held in wallets. The mean coin age did not have a strong trend over the past two weeks.
Additionally, the age consumed metric saw sporadic, sharp spikes since the 22nd of August. This showed a large number of previously idle tokens were moved, likely for selling purposes.
Over the past three days, the age consumed saw another spate of upticks, agreeing with the initital idea that Morpho might see short-term selling pressure.
Since price is drawn to liquidity, the liquidation heatmap can help understand where the next key price targets for MORPHO were at. The 1-month lookback period heatmap revealed a strong magnetic zone at $2.23 overhead.
To the south, the $2 psychological support was also a notable liquidity pocket. Hence, in the event of a sell-off, the $2 should provide an attractive buying opportunity.
Meanwhile, a move beyond $2.23-$2.28 would indicate bullish strength.
