Expected to expand, any upward attempts may encounter resistance from "low-level selling"!

Technical Aspects: Warning of Resistance Levels and Transaction Signals

From the chart, MERL has recently tested the $0.5 mark multiple times but has repeatedly faced setbacks—three attempts to rise have ended with pullbacks, and signs of high-level selling are becoming more evident. It is worth noting that during the price increase, the trading volume did not expand in tandem, and there was even a phenomenon of volume-price divergence: buyers are weak, while selling pressure quickly emerged at key levels. This reflects insufficient confidence among market participants, and the main funds have not shown an intention to break through strongly. Meanwhile, affected by the recent fluctuations of BTC and ETH, the overall market sentiment is leaning towards caution, making it difficult for MERL to stand out. The current candlestick structure shows a slight bearish tilt, with a lack of reliable support above $0.5 in the short term; unless accompanied by a surge in trading volume, the difficulty of breaking through is considerable!

Market Sentiment and Overall Impact

Considering supply and technical factors, the short-term downside risk of MERL is higher than its upside potential. Investor sentiment is generally cautious, with more people choosing to watch rather than aggressively intervene, which further amplifies the transmission effect of pressure. However, once the peak of unlocking passes and the market environment warms up (such as BTC stabilizing and rebounding), MERL may welcome a repair window—provided that clear breakthrough signals appear on the technical side, such as substantial volume standing above $0.5 and maintaining stability!

Investment Strategy Recommendations

Given the current low cost-performance ratio, I recommend maintaining a light position or temporarily exiting the market to avoid blindly catching the "falling knife." A better opportunity is to wait for the dust to settle on the unlocking event.