From the overall market sentiment, $MERL's recent performance seems more like being "dragged along" by the overall weak market. It's not that it doesn't have its own story, but rather that there are too few funds willing to take risks in the current environment. The result is that every time it approaches $0.5, it feels like hitting an increasingly thick wall.

The $0.5 level is not just a technical resistance; it resembles a "psychological boundary line for holders." After three failed attempts to breach it, the market's default expectation has turned into: **Once it reaches this point, someone is bound to sell off.** Once this expectation is formed, breaking through becomes even harder, because every increase in volume is interpreted as "someone wants to run away," rather than "someone wants to push up."

The buyers' hesitation is also quite evident. Although the trading volume has increased, there is no cohesive active buying, with more being tentative relay attempts. Once they see that the selling pressure above hasn’t eased, they immediately back off. Simply put, no one is willing to be the "last baton."

On-chain data also shows very typical signs of weakness: continuous reductions start around $0.5, with batch after batch of chips choosing to exit at the same price level. This indicates that the selling pressure is not incidental but structural, with selling itself being more proactive at higher levels.

Therefore, rather than interpreting $MERL's recent trend as "unable to rise," it is better understood as:

**The current market's "risk pricing" for it has not yet been fully reset, and the chip structure remains bearish.**

In this environment, even if there is a rebound later, it is likely just to clear out floating chips, rather than a true trend breakthrough. Buying at highs can easily be seen as "relay lifting," ultimately getting trapped at the peak of the wave.

A more prudent approach is still to:

* Maintain a light position or watch and wait

* Wait for market sentiment to warm up and for the chips above to be digested more cleanly

* Take action only when there is a clearer low absorption range or trend signal.

Overall, $MERL currently seems more like it's in a phase of seeking direction at a high level, but bears hold the advantage psychologically and structurally, so it is still mainly defensive in the short term.