Over the last month, memecoins have shown significant outperformance compared to major altcoins. Notably, NEIRO coin [NEIRO] has been a standout performer, with a remarkable surge of 114.07%.
However, the recent week witnessed a dramatic shift in market sentiment for NEIRO. Presently, the coin is trading at $0.001744.
This represents a 5.50% decline on a daily basis, accompanied by a 19.42% drop on a weekly timeframe.
These developments have triggered concerns regarding the future trajectory of this memecoin, with analysts at Santiment forecasting a potential market recovery in the near term.
Surge in Exchange Deposits Exceeds +1M
According to Santiment’s analysis, the recent downtrend can be attributed to a significant increase in deposits on exchanges.
Based on the data, it has been observed that over $1 million worth of NEIRO tokens have been deposited into exchanges, leading to increased selling pressure.
Typically, a rise in exchange deposits indicates that investors are gearing up to offload their assets, which, in turn, exerts downward pressure on prices.
This heightened selling activity thrusts prices lower, with sellers dictating the market dynamics.
However, Santiment’s analysis suggests that this surge in deposits has subsided considerably, hinting at a potential return to the previous monthly trend.
The pivotal question remains: Can NEIRO coin reclaim its bullish momentum from the past month, or will bearish sentiment persist?
Interpreting NEIRO’s Market Indicators…
While Santiment points out that the influx of deposits into exchanges has tapered off, evaluating other market indicators becomes crucial.
NEIRO’s active addresses have seen a steady decline over the past month, plummeting from 19,316 to 4,422. This sharp decrease signals waning market participation and demand.
Further, the decline in trading volume amplifies the narrative, with NEIRO’s volume plunging from $4.43 billion to $970.33 million, marking a significant 78.10% decrease in the last month.
Moreover, the quantity of NEIRO tokens held outside of exchanges has dwindled during the same period.
Therefore, the diminishing supply outside exchanges signifies increased liquidity, which can subsequently lead to heightened selling pressure.
Lastly, NEIRO’s withdrawals from exchanges have dropped from 38 to 8 over the past month, hinting that most investors are opting to retain their holdings on exchanges in anticipation of selling.
In essence, the memecoin finds itself in the midst of a pronounced bearish market sentiment.
Given the prevailing market conditions, the potential further decline in NEIRO’s price charts may find support around $0.001280.