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Merlin Chain’s token, MERL, has experienced a significant surge, reaching a multi-month high as its total value locked (TVL) saw a sharp increase. This growth coincides with the continuation of a $1 million trading competition that has garnered attention within the crypto community.

MERL Token Price Soars

The price of Merlin Chain (MERL) jumped to $0.1622, marking a remarkable 132% increase from its lowest point earlier this year. As a result, the project’s market capitalization has surged to over $102 million, reflecting growing investor interest.

Merlin Chain operates as a layer-2 network for Bitcoin, and its ecosystem has recently witnessed a significant inflow of assets. According to data, the total value locked (TVL) within the network climbed to $343 million, up from a monthly low of $85 million. This substantial growth highlights the increasing adoption and activity within the network.

Key Drivers Behind the Growth

The surge in TVL has been primarily driven by the performance of two key protocols:

  • Solv Protocol: Assets locked in Solv Protocol skyrocketed to over $283 million, showcasing strong engagement from users.
  • MerlinSwap: This decentralized exchange (DEX) contributed over $26.5 million to the network’s TVL, further bolstering its ecosystem.

Additionally, the MERL token has gained momentum due to a partnership with Binance. As part of this collaboration, a trading competition has been launched, offering rewards of up to $1 million. The competition will reward the top 10,000 MERL traders based on purchase volume, with each eligible trader receiving 984 MERL tokens, currently valued at approximately $160.

MERL Price Analysis

From a technical perspective, MERL has shown notable bullish signals. The daily price chart reveals that the token reached a high of $0.1622, its strongest performance since January. This rally followed the formation of a triple-bottom pattern at $0.0770, a bullish reversal indicator.

The triple-bottom pattern consists of three distinct lows and a neckline, which in this case was at the $0.1452 level. MERL has successfully broken above this neckline, as well as its 50-day moving average. Indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) also point to continued upward momentum.

Potential Price Targets

Looking ahead, the bullish momentum suggests that MERL could target the 50% Fibonacci retracement level at $0.2881, representing a potential 94% increase from its current price. However, traders should monitor the $0.10 support level closely, as a drop below this threshold could invalidate the bullish outlook.

Key Insights for Investors

For those new to cryptocurrency investing or considering MERL, here are some tips to keep in mind:

  • Monitor network activity, such as TVL and user growth, as they often signal adoption and demand.
  • Evaluate the impact of partnerships and competitions, like the Binance trading event, which can drive short-term price movements.
  • Use technical analysis tools, such as RSI and MACD, to identify potential entry and exit points.
  • Always set stop-loss levels to manage risk, especially in a volatile market like cryptocurrency.

Merlin Chain’s recent performance demonstrates the growing interest in layer-2 solutions for Bitcoin and highlights the importance of innovation and partnerships in driving adoption. Investors should stay informed about key developments and technical indicators to make well-informed decisions.

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