Described as the “sister of the OG Doge,” the dog-themed meme coin Neiro Ethereum (NEIRO) has surged by over 1500% in the past month.
However, with profit-taking on the rise, the token may see some of these gains diminish in the near term.
Neiro Holders Send Tokens to Exchanges
NEIRO’s market value to realized value (MVRV) ratio shows that many holders are in profit. The meme coin’s MVRV ratio is 111% as of this writing.
A value above one indicates the asset is trading higher than its average acquisition cost. When this happens, the asset is considered overvalued, often prompting holders to sell for profit.
At 111%, NEIRO’s MVRV ratio suggests that all its investors, on average, would double their investment if they sold all their holdings at the current market price of $0.23. Historically, the higher the ratio climbs, the more likely investors are to sell for profit.
Profit-taking activity has begun, with some NEIRO holders transferring their coins to exchanges. Santiment data shows that NEIRO’s supply on cryptocurrency exchanges has increased by 63% over the past seven days.
Currently, 62.4 million NEIRO tokens, valued at $15 million based on current market prices, are held on exchanges. Converesly, during the same period, the amount of NEIRO held outside of exchanges has declined by 2%.
Read More: Best Crypto To Buy Now: Top Coins To Keep an Eye on in August 2024
A rise in an asset’s supply on exchanges indicates that its holders are preparing to sell their tokens. This often precedes an increased selling pressure and a possible price decline.
NEIRO Price Prediction: Token May Shed Gains If Profit-Taking Persists
NEIRO risks falling to $0.21 if more holders send their tokens to exchange for profit. If token selloffs persist, it may even slip below the $0.20 price level to exchange hands at $0.19.
Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024
However, if more traders begin to accumulate the altcoin and buying pressure spikes, NEIRO’s price may climb to $0.24.
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