The MORPHO token has come under selling pressure over the past week, dropping nearly 15% from recent highs. On-chain data now warns of growing distribution by long-term holders and elevated selling activity that could drive the price toward the $2 support zone. Traders may want to heed the signals and prepare for further losses if key metrics continue to flash red.
On-Chain Metrics Ring Alarm Bells
Two on-chain metrics—mean coin age and age consumed—are signaling elevated risk. The mean coin age, which measures how long tokens have rested in exchange-derived or wallet addresses, has risen steadily. This suggests that a large share of MORPHO has aged into the hands of investors who have held through multiple cycles and may now be looking to realize gains.
Age consumed, the counterpoint metric that tracks tokens moved after long dormancy, recently spiked to its highest level in six months. A surge in age consumed typically reflects older coins being sold, often indicating that long-term holders are pressing the sell button rather than waiting for further upside.
Liquidity and Order Book Dynamics
Centralized exchange order books show growing ask walls above the current trading range, reinforcing the bearish outlook. Meanwhile, liquidity pools on major decentralized venues have seen MORPHO balances decline, implying fewer tokens staked or deposited for yield. Lower on-chain liquidity can exacerbate price swings, making a sharp drop more likely if the next support level fails to hold.
Technical Levels to Watch
From a technical standpoint, the $2.20 mark served as support during the last pullback but has now been breached decisively. If selling continues, the next critical zone lies between $1.95 and $2.00. A breach below $1.95 could open the door to a deeper correction toward $1.80. Conversely, a reclaim above $2.20 on higher volume would reduce the immediate risk of a further slump.
Strategies for Traders
Short-term traders should consider tightening stop-loss levels or scaling out of existing positions as the price hovers near current lows. Those looking to enter fresh long positions might wait for a clear rebound signal on both price action and the on-chain metrics—particularly a cooling off of age consumed and a decline in mean coin age. Hedging via options or inverse products could also help manage downside risk in this uncertain environment.