$MERL This wave really can't hold on: 0.32 broke straight to 0.2
I've been keeping an eye on the $MERL market recently, and my mindset is a bit collapsing.
This coin has been hovering around 0.34 since last week, and the trading volume has shrunk to an unbelievable level, with only over 20 million dollars in 24 hours. Compared to the previous billions in trades, it's now like a ghost chain.
From a technical perspective, it has already broken many levels.
I looked at the candlestick chart; the RSI is now around 43, and the MACD has long since crossed to the downside, with prices lying below all the moving averages. What's more critical is that the position at 0.32 has now become the last line of defense. Look at the recent trends; every time it tries to surge upwards, it's pressed back by 0.37, showing no strength at all.
To be honest, I also got trapped at this position, thinking it could rebound, but the longer I waited, the more desperate it became. Now the overall market sentiment is defensive; BTC and ETH are both retracing, and the altcoin buying is as weak as paper.
Once 0.32 breaks, it goes straight to 0.2.
What I'm most worried about now is that the support at 0.32 won't hold. Once it breaks, based on the technical patterns, there really isn't much decent support below. 0.27 might just be a resting spot, and to truly stabilize, we might have to wait until around 0.2.
On the contract side, the open interest has dropped by 8.5% in 24 hours, everyone is reducing their positions and retreating. Who dares to take over?
The only hope is at 0.2.
My current thought is that if it really drops to 0.2, it might actually be an opportunity. After all, it's dropped so much already, and the sentiment has been released almost fully. By then, if some technical indicators show oversold signals, we might see a decent rebound. But until then, I won’t easily increase my position.
So for those holding assets now, I suggest reducing positions. This downtrend is obvious, and don’t expect any miracles in the short term.
See you at 0.2, if not, we won't part ways.
