Nillion (NIL) Price Down 30% After Mainnet Debut — No Recovery Yet

Key Takeaways

• The Nillion token price fell from $ 0.86 on launch day due to selling pressure from the allocated airdrop.
• Trading volume also collapsed below $250 million, indicating decreasing demand for the cryptocurrency.
• NIL’s technical setup shows bearish momentum, as the price will likely experience another correction.
• Interested in buying or selling NILLION NIL? Read our review of the best exchanges to buy and sell NILLION NIL.

NIL, the utility token of Nillion, a blockchain-based blind computation and payment network, has seen its price decline by 30%. This decline comes two days after the project went live on Mainnet.

On March 24, the NIL token’s price was around $0.86. Today, the cryptocurrency’s value is $0.64.

In this analysis, CCN reveals why the price has fallen so fast and what could be next for the cryptocurrency.

Nillion Trading Volume Drops After Launch

The Nillion Mainnet launch was met with optimism, with the community bullish on the project. In line with this, the project allocated 19.52% of its 1 billion total supply as an airdrop, which was distributed on the same day.

Exchanges include Binance, Bitget, South Korea-based Bithumb, as well as MEXC, which listed the token. A few hours after this, Nillion’s price dropped to $0.70, and that correction was extended today.

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This is reflected in the cryptocurrency’s trading volume, which is affected by selling pressure from airdrop recipients and weak demand.

According to Santiment, NIL’s volume was nearly $750 million on March 25.

As of this writing, the volume has dropped below $250 million, indicating dwindling interest in the NIL token.

From a trading perspective, rising volume alongside increasing price is a bullish sign.

But in this case, the drop in volume followed by the decrease in price indicates that the momentum has become weak. If sustained, Nillion’s price might continue to decline in the short term.

NIL Price Analysis: Fair Value Undecided

From a technical perspective, Nillion is still in price discovery mode. This indicates that buyers and sellers have yet to arrive at a fair value for the cryptocurrency since it is still in its early trading phase.

However, the 1-hour chart provides insights into how high or low the NIL token can go in the short term. For instance, the Relative Strength Index (RSI) has dropped below the 50.00 neutral point.

When the RSI reading increases, momentum is bullish. But a decline below the midpoint indicates a bearish momentum.

Therefore, if the RSI reading continues to linger below the midpoint, the NIL token price might fail to recover. Using the Fibonacci retracement levels, CCNA noticed that the cryptocurrency’s value might slide to $0.54 at the 0.236 pullback level.

If selling pressure intensifies, Nillion’s value might sink to $0.40. However, this trend might change if trading volume around the token jumps.

If that is the case, and buying pressure follows, NIL might surge by $0.76. In a highly bullish case, the price might climb near its launch value of $0.86.