Chainlink and Polygon: Similar Market Trends and Potential Opportunities
The Essentials at a Glance
Chainlink [LINK] and Polygon [MATIC] are two cryptocurrencies that may seem different at first glance, but upon closer inspection, they share remarkable similarities. Both have recently experienced a decline in their prices, leading to losses for their holders. An analysis of their market capitalization, the MVRV (Market-Value-to-Realized-Value ratio), and open interest reveals parallel trends. This article takes a detailed look at the current situation of LINK and MATIC and sheds light on what these developments could mean for investors.
Market Capitalization of Chainlink and Polygon
According to data from CoinMarketCap, Chainlink and Polygon currently rank 16th and 17th in terms of market capitalization volume. LINK has an estimated market value of about 7.7 billion US dollars, while MATIC is around 6.5 billion US dollars. Both cryptocurrencies have experienced a similar loss in value of nearly 25%, drawing attention to the profitability of the holders.
Analysis of the MVRV
An examination of Chainlink’s 30-day MVRV showed that it has been negative since March 26, with a value of about -20% at the time of analysis. This suggests that holders have suffered nearly a 20% loss during this period. The situation is similar with Polygon, whose MVRV has been negative since March 17 and has a value of around -19.6%. These negative MVRV values could indicate impending price corrections for LINK and MATIC.
Consecutive Declines in LINK and MATIC
An analysis by AMBCrypto showed that LINK was oversold at the time of investigation, which was reflected in the Relative Strength Index (RSI) below 30. This indicates a strong bear trend and oversold conditions that could signal a potential price correction. Similar conditions were also found in MATIC, whose RSI was also below 30, indicating oversold conditions and a strong bear trend.
Decline in Trading Interest
An analysis of Chainlink’s open interest on Coinglass showed a decline in interest in recent days. LINK’s open interest was about 164 million US dollars at the time of analysis, a decrease of over 100 million US dollars since the beginning of the week. The situation was similar with Polygon, whose open interest also decreased by over 100 million US dollars. This suggests a decline in money flows into these assets.
Our Assessment
The parallel trends in Chainlink and Polygon in terms of market capitalization, MVRV, and open interest suggest that both cryptocurrencies are experiencing similar challenges and market conditions. For investors, this could be an opportunity to assess the market situation and identify potential entry points, especially if price corrections occur. However, it is important to conduct a comprehensive analysis and closely monitor developments in the crypto market in order to make informed decisions.
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Sources: CoinMarketCap, Santiment, TradingView, Coinglass
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