MORPHO just put up a 10% gain that has traders wondering whether the beaten-down token has finally found a floor. Volume picked up noticeably during the move, which is a good sign—rallies without volume behind them tend to evaporate pretty quickly.
What makes this pop interesting isn’t just the percentage. Funding rates, which had been languishing at extreme lows suggesting heavy bearish positioning, started recovering. When short sellers begin covering and the cost of holding bearish bets rises, it can create a feedback loop that pushes prices higher in a hurry.
Of course, one strong green candle doesn’t make a trend. The token still needs to take out key resistance levels to confirm this isn’t just another dead-cat bounce in a longer downtrend. But the ingredients—rising volume, recovering funding rates, and a shift in sentiment—are at least pointing in the right direction. Traders will be watching the next few days closely.
