2026-01-18 09:30:29

MERL experienced a 17% volume-driven decline, but from the candlestick trend, this looks more like a rapid bull trap rather than a genuine trend reversal.

The price is currently oscillating near a key support zone. Interestingly, despite the deep decline, there hasn't been a continuous surge of selling pressure. What does this phenomenon usually indicate? The high open interest suggests that the main funds are still in the game. During the decline, trading volume significantly increased, but the price stalled at previous structural levels—this is a typical accumulation pattern.

As long as the price holds the current range and the subsequent lows gradually rise, the momentum for a rebound will quickly gather. From a technical perspective, this is a good entry opportunity.

📍 Long position plan reference:
• Entry range: 0.200 - 0.208
• Rigid stop-loss: 0.185
• Short-term target: 0.240
• Further target: 0.265

The key is to patiently wait for the price to confirm support, then follow the rhythm to enter. Don't be scared by short-term fluctuations—this is the opportunity the market is offering.

MERL13.18%

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BearMarketSurvivor

· 10h ago

A 17% drop looks fierce, but the trading volume being so close suggests that the main force hasn't pulled out yet—simply put, they are replenishing the supply line. The high open interest doesn't lie. The question is whether we can hold the 0.185 support level; only if we do, there will be more to say.

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rug_connoisseur

· 10h ago

Ha, it's both accumulation and bullish washout again. Is the main force really still here? Wait, does a high open interest mean the main force hasn't escaped? Why does this set of rhetoric feel so familiar... 0.185 stop loss, easy to say, but when it drops, it's really intense and fierce. Another perfect technical pattern, will it be this perfect next time too? Confirm support before entering? When will that be?

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StrawberryIce

· 10h ago

It's the familiar accumulation pattern again. If you can't hold the 0.2 level, you have to cut losses and run.

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liquidation_watcher

· 10h ago

It's the same old accumulation theory again, really treating retail investors as bagholders. Can it really hold the 0.185 this time? Anyway, I believed similar analyses last time and got cut in half. I've heard many times that the main players are still in the game, but what happened then... But it is true that it dropped sharply and no one followed the trend, which is quite strange.

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TopBuyerBottomSeller

· 10h ago

Wait, is this really accumulation? Why do I feel like the main force is dumping? Another one telling me to buy the dip. Last time I listened, I got trapped. A 0.185 stop loss is a bit tight; this chart is easily invalidated by a long lower shadow. Honestly, the data does look like that, but I still need to wait for confirmation before taking action. If this wave can really reach 0.265, I would go all in. The key is whether it can hold above 0.200. Is the main capital still in the market? Then why is it dropping so hard? LOL. Feels like the analysis is pretty good, but I just don’t have the confidence to jump in.

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