$MORPHO

Price has been grinding in a controlled downtrend, with each VWAP layer stacked firmly above price and acting as dynamic pressure. The breakdown into 1.45 created a clean liquidation sweep, flushing out late longs and resetting the structure. After the sweep, the chart shifted into a slow, shallow re-accumulation crawl, with candles hugging the lower-mid volatility bands while open interest steadily compresses — a typical post-liquidation stabilization phase.

Above price, there is a thick column of untouched long liquidations starting around 1.56 and extending all the way through 1.62, 1.68, and into the 1.72–1.76 range. This creates a layered magnet zone that often attracts retracement flows once shorts stop pressing. So far, shorts are not building momentum; open interest is declining while price forms higher micro-lows, showing shorts covering rather than expanding.

VWAP compression is key here: all VWAP lines (#1, #2, #3) are stacked tightly above price, sloping downward but with decreasing curvature. That flattening tells you the trend’s momentum is weakening, and the more price stabilizes between 1.48–1.52, the stronger the probability of a reversion push toward the VWAP cluster.

Volatility bands confirm the shift. The liquidation wick at 1.457 tagged the outer deviation band — a classic overshoot — and price has since crawled back inside the envelope, indicating that the extreme move is being absorbed rather than extended. The entire last section of price action forms a slow, tight coil under 1.53, which typically precedes a directional release.

Overall, this is transitioning from a trending compression into a reversion setup — as long as 1.48 holds. The first magnet sits at 1.55–1.56 (VWAP touch), followed by the deeper liquidity pockets at 1.60, 1.62, and above. Downside has minimal new liquidation interest, meaning bears already harvested the lower side and are less incentivized to force another sweep unless 1.48 breaks cleanly.