Merlin Chain (MERL) token surges to a multi-month high

Merlin Chain’s token surged to a multi-month high as its total value locked jumped and as a $1 million trading competition continued.

The price of Merlin Chain (MERL) surged to a multi-month high on Friday as its total value locked jumped and as a $1 million trading competition continued.

MERL price rose to a high of $0.1622, which was about 132% above this year’s lows. This surge pushed Merlin Chain's market cap to over $102 million.

The Bitcoin (BTC) layer-2 network saw an inflow of assets in the past few days. As DeFi Llama data showed, the total value locked in the network jumped to $343 million, up from this month’s low of $85 million.

Its growth was driven by the increase in Solv Protocol's assets, which jumped to over $283 million, and MerlinSwap with over $26.5 million.

The MERL token price also rose as the developers partnered with Binance to create a competition that will see users win rewards of up to $1 million. According to Binance, the top 10,000 MERL traders by purchase volume will share 9,840,000 MERL tokens, with each receiving 984 tokens worth about $160.

MERL price technical analysis

The daily chart shows that the MERL price surged to a high of $0.1622 on Friday, hitting its highest level since January. This rally happened after the token formed a triple-bottom pattern at $0.0770.

A triple-bottom comprises three down-peaks and a neckline, which in this case, was at $0.1452. It has moved above the 50-day moving average and the neckline, while the Relative Strength Index and the MACD have all pointed upwards, indicating that the bulls were in control.

The token will likely keep rising as bulls target the 50% Fibonacci retracement level of the March-August swing high at $0.2881, which is about 94% above the current level. A drop below the support at $0.10 will invalidate the bullish outlook.