Price Watch

$MERL has failed three consecutive attempts to break through $0.5, establishing the resistance level as a structural consensus.

The price action exhibits a classic “exhaustion after spike” pattern.

All three recent rallies over the past few weeks have ended the same way—trading volume increases as the price approaches $0.5, but buying pressure fails to generate sustainable momentum. The capital structure has clearly defined $0.5 as a risk equilibrium point, with bullish sentiment steadily cooling off in this zone.

Macro sentiment lowers risk appetite, lacking momentum for a sustained breakout

After retracements in BTC and ETH, overall market liquidity has shifted to a defensive mode. Near this key resistance, MERL lacks new capital inflows, causing the momentum chain for a breakout to break down. Without a trend continuation, any short-term spike is simply noise-level volatility.

On-chain behavior points to short-term strategies, with funds tending to “cash out at target”

As the price nears $0.5, widely used on-chain addresses are consistently reducing positions, with short-term arbitrage becoming the dominant strategy. This behavior directly flattens the upside potential, reinforcing $0.5 as a structural ceiling. As long as these short-term funds don’t rotate, the resistance zone will persist.