Market Downturn Pushes MERL Below Support: Is Merlin Chain Undervalued?

Crypto Market Pulls Back as a Whole Today; MERL Suffers Notable Drop

As of July 25, 2025, the price of Bitcoin, as measured by the BTC/USDT trading pair, declined approximately 1.89% over the past 24 hours.

Most leading and high-profile tokens also experienced declines of varying magnitudes.

Chart source: https://www.gate.com/trade/MERL_USDT

In this environment, MERL/USDT also declined in line with the broader market, now trading at about $0.11135—down over 10% on the day, briefly touching a low near $0.11069. This decline is primarily due to broad market correlation rather than deteriorating project fundamentals.

Merlin Chain in Review: Technical Strength and Data Continue to Offer Support

Source: https://merlinchain.io/

Merlin Chain is a Bitcoin Layer 2 network featuring three major innovations:

ZK-Rollup module—improves processing efficiency and strengthens privacy;
BTC verification module—ensures security of cross-chain asset interactions;
Decentralized oracle network—boosts Bitcoin’s smart contract capabilities.

Within just 30 days of launch, Merlin Chain’s total value locked (TVL) exceeded $350 million, underscoring the market’s high expectations for its technology stack and real-world adoption.

Additionally, Merlin Chain is backed by the Bitmap Tech team, which has been deeply involved in the Bitcoin ecosystem for years. Their BRC-420 Blue Box has emerged as a top collectible in the Ordinals space.

These strong technical foundations and community assets are expected to sustain support for MERL over the medium and long term.

In-Depth MERL Market Analysis: Is This a Sentiment-Driven Oversell?

Chart data shows MERL briefly rallied to $0.16764 yesterday, then rapidly pulled back—now nearly 34% off its high. Given the bearish market climate, this correction likely overstates any actual change in the project’s value. Technically, MERL is currently testing support near $0.110. If this level holds, a short-term rebound may follow.

Looking at capital flows and trading volume, MERL’s 24-hour trading volume remains high at $19.33 million USDT. This indicates continued market engagement. The token may be experiencing a temporary sentiment-driven oversold condition.

Recommended Next Steps for Investors

Given current market conditions, pursuing price rallies is not recommended, but panic selling is also unwarranted. For MERL, investors might consider the following strategies:

Short-term: Watch the $0.110–$0.112 range for signs of strong support. Consider accumulating on dips.
Medium- to long-term: If you are bullish on Merlin Chain’s ecosystem growth, build a core position in tranches. Monitor its expansion in NFTs and DeFi.
Risk management: Set stop-loss levels. This will help protect against escalating systemic market risk.

Conclusion

While MERL suffered a significant drop today, the decline was largely driven by prevailing market sentiment. Merlin Chain’s technical prowess and ecosystem strategy remain solid and are distinguishing the project among Layer 2 contenders. If market sentiment recovers, MERL may be among the first to stabilize and rebound.