$MORPHO

Price has been in a controlled sideways-to-down drift after the liquidation sweep that printed the low at 1.4570. Since then, the structure shifted into a very clean compression channel between VWAP cluster overhead and the lower deviation bands. This type of long consolidation after a flush usually signals accumulation rather than continuation.

The entire block of liquidity above price between 1.53 – 1.56 remains untouched. This zone is heavily layered with long-liquidation stacks, which tend to act as magnets when price stabilizes and base-building is evident. Below price, liquidation density is extremely thin, confirming that the downside has already been harvested.

VWAP layers are sitting tightly above price, but not rejecting. Instead, price keeps reattaching to the VWAP midline repeatedly, showing a transition from trend to absorption. This is the classic Nohawn mid-range “VWAP cradle” behavior that often precedes a breakout back into the previous range.

Volatility bands are contracting, and price is pinned in the middle zone — a typical volatility squeeze. The recent expansion toward 1.52 shows the first attempt at shifting the balance upward. As long as the local base at 1.47 – 1.48 holds, the squeeze favors an upside resolution.

Open interest remained steady during the sideways drift, meaning the market is neither unwinding nor piling into shorts. That equilibrium normally gives bulls the advantage when overhead liquidity is dense.

Overall, this looks like a maturing compression after a liquidation flush, setting up a reversion move into the higher liquidity levels. Breaking and holding above 1.52 opens the path into 1.54, 1.56, and potentially the deeper liquidity stack near 1.60.