Merlin Chain (MERL), a Bitcoin Layer-2 scaling solution, has experienced a significant price surge and on-chain activity increase, propelling it into the cryptocurrency market's elite top 100 by market capitalization. The token rallied sharply, gaining approximately 16-17% at the time of reporting, briefly touching $0.44 on the OKX exchange.
The rally is largely attributed to a massive liquidity inflow in the derivatives market. MERL's perpetual Open Interest (OI) reached a new all-time high of $75.79 million, expanding by roughly $27 million within a single day. This spike reflects strong bullish sentiment, with trading data indicating long positions dominate market activity. The taker Buy/Sell Ratio reached 1.05, suggesting taker buy orders are leading cumulative volume and reinforcing short-term bullish pressure.
Spot market participants have also contributed to the upward momentum by accumulating MERL, helping to restrict available supply. Exchange outflows over the past day were relatively modest at around $700,000. While the accumulation/distribution indicator has ticked higher, pointing to stronger buying pressure, it remains in negative territory, indicating recent buying has yet to fully offset the heavier selling pressure observed over the prior week.
The milestone of entering the top 100 by market cap is seen as both a result of the rally and a potential catalyst for further interest, offering increased visibility, enhanced credibility, and the potential for liquidity inflows from larger funds. Analysts note that the broader Bitcoin Layer-2 ecosystem gaining traction has positioned Merlin Chain favorably within a hot market narrative.
Despite the bullish indicators, risks of a short-term pullback remain. The liquidation heatmap shows that after clearing major liquidity zones above, most liquidity clusters now sit below the current trading range. This setup classically increases the possibility of a price decline as the market moves to fill those levels, unless bullish momentum continues to strengthen and defy typical liquidity-driven retracements. The future trajectory of MERL is seen as dependent on ecosystem growth, overall crypto market conditions, and its ability to innovate within the increasingly competitive Bitcoin L2 space.
