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

Merlin Chain (MERL) price jumped to $0.1622, up by 132% from its lowest point this year. This surge pushed its market cap to over $102 million. 

Merlin Chain, which offers a Bitcoin layer-2 network, has seen an inflow in assets in the past few days. DeFi Llama data shows that 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 Solv Protocol’s assets, which jumped to over $283 million, and MerlinSwap with over $26.5 million. 

The MERL token also jumped as the developers partnered with Binance for a competition that will see users win rewards of up to $1 million. 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 jumped to a high of $0.1622 on Friday, 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,

The token will likely keep rising as bulls target the 50% retracement level at $0.2881, up by 94% above the current level. A drop below the support at $0.10 will invalidate the bullish outlook.