Over the last month, memecoins have shown superior performance compared to major alternative cryptocurrencies. Among these memecoins, NEIRO coin [NEIRO] has particularly shined, recording a remarkable surge of 114.07%.
However, the recent week witnessed a significant shift in market sentiment for NEIRO. Currently, the coin is being traded at $0.001744.
This represents a daily decline of 5.50%, with a weekly drop of 19.42% according to the charts.
These circumstances prompt uncertainties regarding the future trajectory of the memecoin, with analysts from Santiment forecasting a potential recovery in the market in the short term.
Exchanges Experience an Influx of over +1M
An analysis by Santiment indicates that the recent dip was triggered by a notable increase in deposits to exchanges.
As per the data, more than $1 million in deposits have been observed flowing into exchanges related to NEIRO, leading to increased selling pressure.
Typically, a rise in exchange deposits implies that investors are gearing up to sell their tokens, resulting in these deposits being sold off and exerting higher selling pressure on the market.
This situation pushes prices downwards, with sellers having a dominant presence in the market.
Nevertheless, as per the Santiment analysis, the intensity of these deposits has substantially decreased, potentially hinting at a return to the monthly trend in the market.
The question that arises is whether the memecoin can regain its bullish monthly trend or if bearish forces will persist in controlling the market.
Interpreting NEIRO’s Market Charts…
While Santiment suggests a cooling down of the exchange deposits, it is crucial to examine what other market indicators reflect.
The number of active addresses associated with the memecoin has been consistently dropping over the last month, falling from 19,316 to 4,422. This significant decrease indicates a reduction in market participation and demand.
This decline in demand is further supported by a decrease in trading volume, with NEIRO’s volume dropping from $4.43 billion to $970.33 million, marking a substantial decline of 78.10% during the past month.
Furthermore, the supply of NEIRO outside of exchanges has been dwindling over the same period.
Hence, the diminishing supply outside of exchanges signals increased liquidity, ultimately resulting in higher selling pressure.
Lastly, the active withdrawals of NEIRO from exchanges have reduced from 38 to 8 over the last month, indicating that most investors are retaining their assets in exchanges in anticipation of a potential sale.
In essence, the memecoin has been under the influence of a strong bearish sentiment in the market.
Given these market conditions, the memecoin may be poised for further price declines. Therefore, if the current sentiment persists, the memecoin is likely to find support around $0.001280.