As crypto market sentiment improved, MORPHO, the token of the DeFi lending protocol Morpho, rose by about 20% in the past 24 hours, reaching a high of $1.92. Following Bitcoin's rebound from around $60,000, some funds have flowed back into small- and mid-cap tokens, with MORPHO being one of them.

Short-term rebound drives recovery

The data in the article shows that MORPHO had previously entered oversold territory but has recently shown a significant recovery. The RSI has risen to 49.36, indicating that selling pressure has eased compared to the previous period. The MACD histogram is still negative, but the downward momentum is weakening.

MORPHO is currently trading below its 50-day exponential moving average, and the resistance above has not yet been fully resolved. The price will next face a test in the $1.97 to $2.00 range. If buying interest fails to sustain, the market may refocus on the previous low near $1.59.

Market sentiment remains cautious.

While some altcoins have rebounded, the overall market has not fully recovered. The article notes that the crypto market's Fear & Greed Index is currently at 16, still in the "extreme fear" zone. In this context, altcoin rallies are typically less sustainable, and short-term volatility may be amplified.

Morpho releases new lending plan

In addition to the price rebound, Morpho recently released a technical paper on Morpho Midnight. This is a protocol design for fixed-rate, fixed-term lending scenarios, aiming to meet institutions' needs for predictable financing conditions.

According to the article, Morpho Midnight will centralize liquidity with the same maturity date to address the issues of liquidity dispersion and efficiency in past DeFi fixed-rate lending products. This product targets the nearly $25 billion on-chain lending market.

If this product is subsequently adopted, the total value locked (TVL) and fee revenue of the Morpho protocol could increase, and it may also attract more institutional funds. For Morpho, the progress of such products is more worthy of the market's continued attention than a simple short-term rebound.