A new contender in the meme coin space, Neiro Ethereum (NEIRO), has seen a meteoric rise of over 1500% in the past month. Often compared to the renowned Doge coin, some are now saying that a correction might be imminent as the token is showing signs of being overvalued.
The market value to realized value (MVRV) ratio of NEIRO, which stands at 111% currently, points to the fact that many investors stand to gain from their holdings. This ratio, above one, implies the asset price is higher than its average acquisition cost. Consequently, it indicates overvaluation, signaling holders may start to offload their holdings for profit.
Indeed, evidence is already suggesting that holders have begun cashing out. Data from Santiment reveals that the volume of NEIRO coins on crypto exchanges soared by 63% over the past week. Concurrently, the amount of NEIRO held off exchanges dipped by 2%.
With increased selling pressure, the NEIRO token could tumble to as low as $0.21. If the sell-off trend persists, the price may further decline, possibly to $0.19. However, there is a potential for recovery if buying momentum picks up, in which case, the price could inch up to $0.24.