Here are some things you need to know.
**1. High Selling Pressure (More Sellers than Buyers)
Explanation: Trading volume simply indicates activity, not whether it's mostly buying or selling. If most of the volume comes from sell orders, the price will drop.
Signs to Watch:
Red candles with high volume.
Price consistently failing to hold support levels.
**2. Market Sentiment
Explanation: Negative sentiment, fear, or bearish expectations can drive prices lower even with high trading activity.
Examples:
Fear of larger market downturns (e.g., Bitcoin dropping).
Negative news about the NEIRO project or related markets.
**3. Whale Manipulation
Explanation: Large holders ("whales") might intentionally sell large amounts to drive the price down and accumulate at lower levels. High volume during this phase could reflect their activity.
Signs:
Sudden, sharp declines in price with significant spikes in volume.
**4. Distribution Phase
Explanation: If NEIRO is in a "distribution phase," large holders might be offloading their holdings to retail traders. This creates high volume but downward price pressure.
Signs:
Frequent price rejections at resistance levels.
Failure to sustain price increases after rebounds.
**5. Liquidity Issues
Explanation: If the market lacks enough buyers to absorb the sell orders, prices will fall even with high trading activity.
Signs:
Gaps or rapid price drops between support levels.
6. Broader Market Context
Explanation: If the overall crypto market is bearish, it can drag down most tokens, including NEIRO, regardless of individual volume.
Examples:
Bitcoin dominance increasing.
Macro-economic events or regulations affecting the market.
How to React?
Check Order Books: Look at buy vs. sell walls to gauge current pressure.
Monitor Key Levels: Watch whether the price breaks key support or resistance.
Use Indicators: Use tools like RSI or OBV (On-Balance Volume) to confirm whether volume is bullish or bearish.
