Key Takeaways
Why is Neiro’s price dropping so sharply?
Major exchange delistings by Bybit and Binance, combined with whale offloading, triggered panic selling and reduced liquidity.
What signals show worsening market sentiment?
Open Interest crashed to $10M, and shorts now dominate Futures, signaling bearish momentum and expectations of further decline.
Since hitting $0.18 two weeks ago, Neiro on Ethereum [NEIRO] has traded within a descending channel. As of this writing, Neiro traded at $0.0371, marking a 7.21% drop on daily charts and a 25.57% drop on weekly charts.
But why is Neiro declining?
Binance exchange delists NEIRO
AMBCrypto observed that the primary factor causing Neiro’s sharp decline is a lack of strong backing from exchanges.
For example, two weeks ago, Bybit announced the delisting of NEIROETH contracts, which sparked significant price volatility.
Besides Bybit, on the 22nd of September, Binance, the largest crypto exchange by trading volume, announced the delisting of NEIROETHUSDT contracts.
Typically, when exchanges delist contracts, liquidity decreases because a central avenue of support is no longer available for the market.
This is a clear sign of a lack of market confidence from exchanges, which could spark massive bearish pressure in the short term.
Trend Research accused of insider knowledge
Interestingly, amid the continued delisting by major exchanges, crypto analysts have flashed a major red flag.
Notably, on-chain tracker EmberCN speculated that Trend Research seems to have insider knowledge before making moves.
On the 4th of September, Trend Research transferred 32.4% of NEIROETH, approximately 324.7 million tokens, worth $22 million, to exchanges.
Following this exchange deposit, Bybit announced the delisting of NEIROETH Contracts. The same pattern repeated itself on the 21st of September.
On this date, Trend Research transferred another 34.6% of NEIRO or 346 million tokens, worth $14.36 million, to exchanges.
On the same day, Binance delisted its NEIROETHUSDT contracts, raising significant concerns in the market.
On-chain activity surges
After this announcement, NEIRO’s on-chain activity surged significantly. According to Santiment, the altcoin’s Daily Active Addresses surged from 95 to 211 at press time.
Source: Santiment
Typically, such a spike in active addresses indicates increased participation with the network, reflecting growing on-chain demand.
At the same time, its Price DAA Divergence further validates our earlier observation on rising active wallets.
Futures turn bearish
As expected, after Binance delisted, investors rushed into the market to close positions. According to Coinglass, NEIRO’s Open Interest dropped to a new all-time low of $10 million.
Source: CoinGlass
Usually, a decline in OI suggests that fewer new positions are opened while existing ones are aggressively closed.
Meanwhile, the memecoin’s Long/Short Ratio declined to 0.90, with Shorts accounting for 52% of the Futures positions.
When shorts dominate the market, it indicates that most participants are bearish and expect prices to decline further.
Source: CoinGlass
These market conditions position NEIRO for more losses on its price charts. If this trend persists, we will see a dip to $0.0302. However, if markets cool down, the altcoin will seek to reclaim $0.046.
