NEIRO Token Faces Selling Pressure: What’s Happening?
Significant shifts are occurring in the NEIRO [NEIRO] market. A major holder, Trend Research, controlling approximately 67.08% of the token supply, has liquidated a substantial amount of their holdings, selling off 129 million NEIRO tokens valued at $10 million. Additionally, retail investors have also reduced their positions, offloading around 2.85 million tokens.
The price of NEIRO, an Ethereum-based token, has been on a downward trend since peaking at $0.17 a month prior. Its price movement is now contained within a descending channel. This recent performance follows previous indications of a battle between buyers and sellers, explored in a prior analysis.
Currently, NEIRO is trading at approximately $0.067. This represents a 13.3% decrease in value over the last 24 hours. The token has experienced declines of 32% and 49.3% over the past week and month, respectively, indicating a persistent negative sentiment.
This substantial price decline coincides with the large-scale selling activity initiated by NEIRO’s largest single holder.
NEIRO’s Top Investor Dumps a Significant Portion of Holdings
According to information shared by Lookonchain on X, Trend Research, the entity holding the lion’s share of NEIRO tokens, has resumed selling activity. They deposited 129 million NEIRO tokens, worth an estimated $10 million, onto the Bybit exchange.
Trend Research had previously amassed 670 million NEIRO tokens between August 2023 and March 2024, spending around $55.55 million to build their position.
With NEIRO trading at $0.083 during their initial accumulation, the recent sales indicate that Trend Research is currently selling at a loss.
Selling at a loss often suggests that investors lack confidence in the token’s future prospects and fear further price depreciation.
Increased Selling Pressure From Retail Investors
NEIRO is experiencing widespread selling activity across all investor segments. Data from Coinalyze indicates significant sell volume exceeding buy volume. $2.85 billion in NEIRO tokens were sold, compared to $2.47 billion bought.
Source: Coinalyze
This resulted in a negative Sell-Buy Delta of -379.16 million, reflecting strong selling pressure. Data on exchange activity mirrors this trend. On September 4th, NEIRO’s Exchange Flow Balance reached 129.57 million, indicating a significant increase in tokens flowing into exchanges, presumably for sale.
Source: Santiment
Bearish Sentiment Dominates Derivatives Market
The derivatives market reflects the negative sentiment surrounding NEIRO. Despite the price decline, Derivatives Volume has surged by 226% to $53.5 million, while Open Interest (OI) has slightly decreased by 0.7% to $18 million.
Source: CoinGlass
The combination of increased trading volume and decreased open interest often suggests that traders are closing positions quickly rather than holding them for extended periods.
Furthermore, the Long/Short Ratio for NEIRO has fallen to 0.88, indicating a stronger preference for short positions. This suggests that a significant portion of participants in the futures market expect further price declines.
Further Downside Potential?
AMBCrypto’s analysis indicates that NEIRO’s price is currently experiencing strong downward momentum, with sellers firmly in control.
The Relative Strength Index (RSI) has dropped to 30, entering oversold territory. Similarly, the Positive Directional Movement Index (DMI) has decreased to 14, while the Negative DMI has increased to 22.
Source: TradingView
These indicators typically suggest strong downward momentum and a likelihood of continued price declines.
If the current selling pressure from both large holders and retail investors continues, NEIRO’s price could fall below $0.06 and potentially find support around the $0.057 level.
However, should the selling pressure subside and buyers emerge to capitalize on the lower prices, a potential recovery towards $0.089 could occur.