After the data from Odaily Planet Daily came out,
$MERL briefly surged above 0.44, with a 24-hour increase of 17%,
many people's first reaction was to continue chasing.
However, at the same time the price was pushed up,
a very clear signal appeared on-chain —
approximately 16 million MERL were directly transferred to Bybit, worth nearly 8 million USD.
Such a volume, at this point in time, is basically impossible to be a purposeless operation.
Putting it on the exchange has only one practical significance:
to prepare in advance for selling or increasing liquidity.
Interestingly, this action occurred before a concentrated unlocking.
Rather than waiting for the liquidity to deteriorate at the unlocking node,
it's better to place the chips in a position where they can be executed at any time.
This logic is actually quite easy to understand.
It is precisely because of this on-chain action that
my judgment on the current surge is very clear:
this provides positions for shorts, rather than a signal for longs to chase prices.
In terms of short-term operations,
the current approach is to find short positions around the surge,
rather than continuing to bet on a breakout at high levels.
The direction has already been made very clear,
what remains is to wait for the price to bring the position up.

