Dear traders, after carefully examining the technical trends of $MERL, some potential signs of weakness have begun to emerge, which may indicate an impending short-term adjustment.
From the candlestick structure, the price on the daily chart repeatedly tests the resistance level of $0.45 but has never been able to effectively maintain that level. Although the accompanying trading volume has expanded, the price has not risen in tandem, leading to a significant divergence between volume and price. The MACD indicator shows a trend of a death cross forming, and the RSI value hovers just below the neutral zone, with the overall pattern gradually shifting towards weakness. Under the current pressure of a market environment trending downward, the momentum of $MERL appears constrained, and it is very likely to slide into a gradual downward pattern.
Additionally, considering broader market factors, the token unlock event has just passed, with an additional 70 million tokens entering circulation, which significantly expands the supply scale. The market's selling expectations have not completely dissipated, especially among investors who obtained low-cost chips through OTC channels, who often choose to lock in profits when the price shows slight recovery, further suppressing the rebound potential. Therefore, any upward attempts at this time may just be a fleeting moment, and one should not hastily view it as a bottom-fishing opportunity.
Today is December 22, 2025, and the latest quote for $MERL is approximately $0.42, with a rise of about 10% over the past 24 hours, and its market capitalization remains firmly within the top 100. Although these data may seem positive on the surface, when combined with the analysis above, the overall outlook leans towards caution.
Therefore, I recommend adopting a bearish strategy in the short term: open short positions at highs within the $0.44-$0.45 range, maintaining an initial position size of 20-30%, with a stop-loss placed above $0.46 (if the price sets a new high, then the plan is void). The initial downward target can be aimed at the support level of $0.38; if it successfully breaks below, consider chasing the short to around $0.32.
Of course, all operations prioritize risk management, and do not rush to heavily invest. Patiently wait for the selling pressure to be gradually absorbed by the market before reassessing the possibility of shifting to a bullish stance.
