2026-01-20 05:30:10

$MERL experienced a typical breakdown after a volume-driven decline. The most notable point here is that the open interest remains high while the price drops sharply, a combination that often indicates large-scale liquidations of long positions.

From the data, $MERL has fallen more than 22% intraday, with significantly increased trading volume, and the market appears quite weak. High open interest combined with a sharp plunge is usually driven by two scenarios: one is leveraged longs being liquidated in succession, and the other is major players actively selling off. This is not a healthy technical correction.

The price has already broken through a key support level, with no obvious buy-side defense below. From a trading perspective:

Short entry price: 0.168-0.172 range
Stop-loss: 0.180 (must be strictly enforced)
First target: 0.155
Second target: 0.140

Any rebound back to the previous support zone (now turned resistance) presents a new short entry opportunity. This combination of high open interest and a weak market often can continue for some time.

MERL-7,31%

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BearEatsAll

· 16h ago

Damn, it's the same old trick again. Those who bought in at high prices are probably kicking themselves now. 22% gone in a day—that's some serious smashing.

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DaoDeveloper

· 16h ago

honestly the liquidation cascade here looks textbook - high open interest + violent selloff = classic forced deleveraging signal. seen this pattern play out too many times. but ngl the real question is whether this is coordinated whale accumulation or actual market weakness... the order book structure would tell us more than these price levels tbh

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FloorPriceNightmare

· 16h ago

It's the same old trick. The retail investors who bought in at high prices are probably going to get liquidated this time. A 22% drop combined with no reduction in holdings is a recipe for a liquidation feast.

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Ramen_Until_Rich

· 16h ago

Holding a high position and not selling? Are you planning to go down together?

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SolidityNewbie

· 16h ago

Oh wow, MERL really hit hard this time, dropping 22% and breaking through the level. The bullish liquidation wave is deadly. Holding positions at high levels and not selling? This is a trap, the main force is fishing. Short at 0.168? I'll wait and see first, this kind of market can easily backfire.

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SchrodingerPrivateKey

· 16h ago

A 22% drop directly broke the support, and the holdings are still so high... This rhythm feels off. Bulls will either get liquidated or wait for the main force to finish selling.

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