Key Takeaways
Trend Research, a top holder with 67.08% of NEIRO’s supply, offloaded 129 million tokens worth $10 million. Meanwhile, retail investors offloaded 2.85 million tokens.
Since hitting $0.17 a month ago, Neiro on Ethereum [NEIRO] has traded within a descending channel.
As of this writing, NEIRO was trading at $0.067, marking a 13.3% decline on the daily charts. This bearish outlook has persisted across both weekly and monthly charts, with declines of 32% and 49.3%, respectively.
Amid this strong downtrend, NEIRO’s top holder began selling.
NEIRO: Top holder dumps 129 million tokens
According to Lookonchain, Trend Research, which holds approximately 67.08% of the total NEIRO supply, returned to the market to sell.
The wallet deposited 129 million NEIRO tokens worth $10 million into Bybit. This holder accumulated 670 million tokens for $55.55 million between August 2023 and March 2024.
Source: Lookonchain
At the time, NEIRO was selling at $0.083, and with the recent market dip, these tokens are being sold at a loss.
Typically, when holders turn to selling at a loss, it signals a lack of confidence and a fear of incurring further losses.
Retail selling activity intensifies too
Interestingly, NEIRO has faced vigorous selling activity from all market participants. According to Coinalyze data, the memecoin saw $2.85 billion in Sell Volume compared to $2.47 billion in Buy Volume.
Source: Coinalyze
As a result, the memecoin recorded a negative Sell-Buy Delta of -379.16 million, a clear sign of aggressive selling.
Exchange activities further echoed this selling trend. On the 4th of September, NEIRO’s Exchange Flow Balance spiked to 129.57 million, indicating higher inflows.
Source: Santiment
Derivatives highly bearish
Notably, amid NEIRO’s price drop, participation in the derivatives market has skyrocketed. Per CoinGlass, Derivatives Volume jumped 226% to $53.5 million, while Open Interest declined 0.7% to $18 million.
Source: CoinGlass
Typically, when volume rises while OI drops, it suggests investors have closed out positions quickly instead of holding.
Surprisingly, the memecoin’s Long/Short Ratio dropped to 0.88, indicating higher demand for short positions.
Thus, those entering the Futures market are shorting the market, expecting prices to drop further, which is a clear bearish signal.
More losses ahead?
According to AMBCrypto’s analysis, NEIRO has experienced strong downward momentum as sellers dominate the market.
Its Relative Strength Index (RSI) declined to 30, touching oversold territory. Likewise, the Positive Directional Movement Index (DMI) also fell to 14, while the negative index rose to 22.
Source: TradingView
Typically, when momentum indicators are in such a manner, they signal strong downward momentum and its likelihood to continue.
That said, if selling pressure from whales and retail persists, NEIRO will drop below $0.06 and find support around $0.057.
However, if bears get exhausted, and bulls jump to buy the dip, fresh demand will boost a recovery towards $0.089.
