MERL Surges 16% as Open Interest Hits $75.8M; Spot Accumulation Raises Pullback Risk
MERL, the native token of Merlin Chain (a Bitcoin layer-2), jumped about 16% following a large liquidity inflow that pushed perpetual open interest (OI) to an all-time high of $75.79 million — roughly $27 million added in one day. Spot metrics show continued accumulation: active holders rose to ~173,800 and exchanges recorded net outflows of roughly $700,000, reducing circulating exchange supply. Derivatives data indicate buyer-dominant momentum with a taker buy/sell ratio of 1.05 and significant OI growth, but the accumulation/distribution indicator remains negative, suggesting buying has not yet fully offset prior selling. A liquidation heatmap now places most liquidity clusters below the current price after the rally, increasing the probability of a short-term pullback unless bullish momentum persists. Key trader signals to monitor: all-time-high open interest ($75.79M), one-day OI increase (~$27M), taker buy/sell ratio (1.05), holder count (~173,800), and exchange outflows (~$700K). Watch OI changes, exchange flows and liquidation heatmaps for signs of continuation or imminent retracement; sustained spot accumulation would support longer-term gains.
Bullish
The net effect is bullish for MERL but with elevated short-term risk. Large one-day inflows and an all-time-high perpetual OI ($75.79M) signal strong derivatives liquidity and trader conviction, while a taker buy/sell ratio above 1 (1.05) shows buy-side dominance. Spot-side metrics — holder count rising to ~173,800 and ~$700K net outflows from exchanges — support demand and reduced sell-side supply, which can sustain upward price pressure. However, the accumulation/distribution indicator remains negative, indicating prior selling pressure has not been fully absorbed, and the liquidation heatmap now positions many liquidity clusters below current price after the rally. That configuration historically raises the odds of short-term profit-taking or a pullback as stops and liquidation levels are tested. For traders, this means a bullish bias overall but expect heightened volatility: watch OI trajectory, taker ratio shifts, exchange flows and heatmap levels for confirmation of continuation; failure to sustain OI or a spike in exchange inflows could trigger a retracement.