Earlier on Saturday, October 12, the cryptocurrency market witnessed a significant boom as First Neiro on Ethereum (NEIRO) recorded a 5000% increase to reach an all-time high of $0.0021.
Although it outperformed all the broader crypto market experts say that there are signs of potential reversal that investors should take into account and proceed with caution.
This unprecedented surge of First Neiro on Ethereum caught the imagination of crypto analysts and enthusiasts as the market opened on Monday. At present, NEIRO is trading at $0.002019 with a 7.9% increase in volume in the last 24 hours to reach $513.54M transaction volume. NEIRO is still maintaining its gains despite pulling back from its peak trading value. This comes at a time when major crypto assets like Ethereum and Bitcoin showed mixed signals in this volatile cryptocurrency market.
First Neiro on Ethereum has capitalised on its exponential growth to be a top performer in its category as the trading volume of the token has grown significantly, which could be an indication of interest from institutional and retail investors. However, crypto experts are concerned about the sustainability of such rapid growth in the short term.
As the Relative Strength Index (RSI) of the First Neiro on Ethereum stands at 74.65, well into overbought territory, there’s an indication that NEIRO is reaching a critical juncture in the crypto market. Usually, an above 70 RSI is indicative of an overvalued crypto asset which needs correction. It’s in line with the historical patterns seen in such rapid price movements in the crypto space.
Moreover, NEIRO’s Chaikin Money Flow (CMF) is at -0.01, which shows a negative metric towards increased selling activity in the face of more buying and selling pressure. This could be an indicator that crypto investors are indulging in profit-taking while the market remains balanced.
The most telling sign is NEIRO reaching an all-time high of $209 million, which is a 186% increase over the previous month. DeFi data aggregator DeFi Llama confirms this upward trend as the total value locked (TVL) in NEIRO protocols showed a sharp spike. This open interest can mean strong market confidence along with overbought indicators, but it also might be because of an overheated market prone to sharp corrections.
This surge in First Neiro on Ethereum is not an isolated incident, as the broader DeFi sector has also seen renewed interest in recent weeks, with significant price appreciation observed across several projects. All of this comes at a time when the Ethereum blockchain is preparing for upgrades, which is probably behind this investor-led optimism in Ethereum tokens.
The coming few days, especially this week, will be critical for First Neiro on Ethereum as there are possible chances of retracement to $0.00085 trading value if the selling pressure intensifies. However, the ongoing momentum can also push NEIRO to go beyond its present all-time high.