In the previous week, NEIRO encountered a challenging period, witnessing a 13.73% decline in its price. However, it quickly rebounded with a 1.33% increase, entering an accumulation phase currently.
According to CryptoCrypto, the ongoing bearish trend in NEIRO may be connected to the broader market’s recent sell-off, indicating potential additional downward pressure on NEIRO’s price.
NEIRO Engages in a Classic Bearish Pattern
At present, NEIRO is following a typical bearish pattern marked by a price decline, consolidation, and an anticipated further drop. Following the initial price drop, the altcoin appears to be in a consolidation phase.
After consolidating, it is anticipated that NEIRO may experience a significant decrease, potentially by 47.78%, bringing its price close to the crucial support level at 0.000102899.
This particular level was last seen during a significant rally in October, with a 47.78% decline erasing all gains made in November for NEIRO.
As of now, NEIRO has gained 11.86% over the month as recorded till date.
Bearish Sentiment Prevails as Traders Opt for Profit-Taking
Recent metrics from IntoTheBlock indicate a preference for bearish sentiment, with more sellers (bears) than buyers (bulls) active in the market. In the last seven days, the number of bears increased to 70, while bulls remained at 63.
The dominance of bears over bulls is determined by IntoTheBlock based on whether they engage in more than 1% of the total trading volume. With bears in charge, an increase in selling activity is expected.
Furthermore, despite the price drop, the total number of NEIRO addresses holding the coin rose, indicating that many holders have been gradually selling their assets, contributing to the downward price pressure.
If these patterns persist, NEIRO is likely to move out of its consolidation phase and continue its decline.
Decrease in Weighted Sentiment Leads to Limited Buying Interest
Coinglass’s data reveals that the OI-weighted funding rate dropped to 0.041% on the 8-hour chart period.
This funding rate adjustment based on Open Interest distribution in perpetual Futures contracts suggests a shift towards bearish sentiment, prompting more sellers to take advantage as buyers exit the market.