Fluctuations in market sentiment are often an important factor in cryptocurrency price movements. Today, many investors expressed concerns about the decline of $NEIRO , believing that this could mean the end of the market. However, the reason behind this decline is actually quite straightforward: supply exceeds demand.

Why does the phenomenon of oversupply occur? This is related to market trading habits. As mentioned earlier, weekend trading volume has tended to be smaller over the past six months. This is not to say that the market has any bias against weekend trading, but that market participants generally reduce trading activities on weekends. Therefore, both buyers and sellers will see a significant reduction in trading volume on weekends.

For popular currencies like $NEIRO , the liquidity of funds in the market is high. When the overall trading willingness of the market decreases, the floating chips in these currencies become particularly conspicuous. In the case of extremely shrinking market trading volume, these small-scale panic selling and profit-taking behaviors will be amplified because there is not enough buying in the market to take over these selling orders. However, the reduction in buying is not because the market has lost confidence in Neiro, but because the overall market trading volume is decreasing.

Therefore, today's decline of Neiro is different from the previous violent fluctuations. It is a gradual decline, and the overall decline is not large. It's just that those hot money investors who are easily affected by market sentiment may see this decline too seriously and panic. If you look closely at the decline list, you will find that most of the currencies with large declines are those with strong liquidity and active trading, such as some newly listed currencies.

If you panic, then you may belong to the small number of investors in the market who are easily affected by emotions. In this case, it is crucial to stay calm and rational. Market fluctuations are normal, and investors should learn to adapt to such fluctuations rather than be swayed by them. By deeply analyzing market trends and currency fundamentals, investors can better understand market dynamics and make smarter investment decisions.