NIL has performed remarkably in the past 24 hours, with the price soaring over 21%, but there are underlying factors behind this rally.

**Driving Forces Behind the Price Surge**

From a technical perspective, this upward trend is quite solid. The 7-period moving average successfully crossed above the 25-period and 99-period moving averages, forming a classic golden cross, indicating strong short-term bullish momentum. At the same time, the MACD indicator continues to strengthen, with a clear increase in momentum, perfectly resonating with the price movement. This technical setup is considered a typical bullish signal by traders.

Progress at the project level has also gained attention. Nillion saw inflows of up to 6.8 million files in the past 7 days, reflecting a sustained increase in ecosystem activity. With the support of zero-knowledge computation and AI technology, this secure computing network's position is becoming increasingly solidified. Analytical institutions have already listed Nillion as a high-potential project for 2026, positioning it in the privacy and security infrastructure sector. Some reports even refer to it as the "Human Private Data Layer," a designation that carries significant weight in the current industry context.

**But Bulls Need to Be Cautious**

However, a cool-headed approach is necessary here. The RSI on the 6, 12, and 24-period charts are all in overbought territory, which is a clear signal—prices may be overextended. When RSI is this high, it usually indicates a higher risk of short-term correction, and greedy traders should consider risk management.

Volatility has also surged in recent days. The ATR over the past 24 hours reached 0.0027, and the standard deviation hit 0.0060, indicating that market volatility is significantly increasing. In such an environment, prices are prone to sharp oscillations, and both bulls and bears could be shaken out.

Most concerning is the on-chain fund flow data. The latest on-chain data shows total outflows exceeding 365,000 USDT, with many being large holders participating. This typically reflects two scenarios: first, some early entrants taking profits during this rally; second, large holders remaining cautious about the subsequent trend.

**Community Perspective**

In trading communities, the bulls are still the main voices, with many celebrating their gains and expecting further price increases. This optimistic atmosphere indeed reflects market strength and the token's attractiveness, but it also serves as a reminder: when popularity peaks, it’s often the time to be most cautious.

Overall, the technical and project fundamentals support this rally, but the combined signals of overbought conditions, capital outflows, and rising volatility suggest that the upcoming trend could become more volatile. Bulls should enjoy the gains but also prepare for possible corrections.