NEIRO Plunges as Whale Dumps $10M: What's Next?
NEIRO Faces Downturn After Significant Token Sale
Neiro on Ethereum [NEIRO] is experiencing significant downward pressure. The token's price has declined sharply following a large sell-off by one of its major holders.
Key Highlights:
- Trend Research, controlling 67.08% of NEIRO's supply, deposited 129 million tokens (worth $10 million) on Bybit.
- Retail investors also contributed to the selling pressure, offloading 2.85 million tokens.
- NEIRO is currently trading around $0.067, reflecting a 13.3% daily decrease.
NEIRO has been trending downwards for the past month, trading within a descending channel since hitting $0.17. The recent sell-off has exacerbated this bearish trend.
Whale Activity Sparks Price Drop
Lookonchain reported that Trend Research, a major NEIRO holder, moved a substantial amount of tokens to the Bybit exchange. This entity had previously accumulated 670 million NEIRO for $55.55 million between August 2023 and March 2024.
Selling at the current price means Trend Research is realizing a loss, a move often interpreted as a lack of confidence in the token's future prospects.
Retail Investors Follow Suit
The selling pressure isn't limited to large holders. Coinalyze data indicates a significant sell volume of $2.85 billion compared to a buy volume of $2.47 billion.
This resulted in a negative Sell-Buy Delta of -379.16 million, indicating strong selling sentiment among retail investors.
Exchange flow data supports this, with NEIRO's Exchange Flow Balance spiking to 129.57 million on September 4th, signaling increased token inflows to exchanges.
Derivatives Market Turns Bearish
Activity in the derivatives market reflects the overall bearish sentiment. Derivatives volume surged by 226% to $53.5 million, while Open Interest slightly decreased by 0.7% to $18 million, according to CoinGlass.
The Long/Short Ratio dropped to 0.88, suggesting a higher demand for short positions, as traders anticipate further price declines.
Potential Future Losses for NEIRO?
AMBCrypto’s analysis points to continued downward momentum. The Relative Strength Index (RSI) has fallen to 30, entering oversold territory. Additionally, the Positive Directional Movement Index (DMI) is at 14, while the Negative DMI is at 22, reinforcing the bearish outlook.
If selling pressure persists, NEIRO could breach $0.06 and potentially find support around $0.057. Conversely, if buyers emerge, a recovery towards $0.089 is possible.