- LINK and MATIC have been falling for the past few days.
- Holders are currently facing losses due to falling prices.
chain link in progress [LINK] and polygon [MATIC] Although seemingly unrelated, their rankings on the market cap chart show a similar pattern.
Additionally, looking at MVRV (market value to realized value ratio) and open interest reveals similar trends.
Chainlink and Polygon market capitalization
According to data from coin market capChainlink and Polygon currently rank 16th and 17th in terms of market capitalization.
As of this writing, LINK’s market cap was approximately $7.7 billion, while MATIC’s market cap was approximately $6.5 billion.
Notably, LINK’s value has fallen by nearly 25% at the time of writing, and MATIC was in a similar range. This price movement draws attention to the current profitability of holders.
Analysis of MVRV
An analysis of Chainlink’s 30-day MVRV reveals that it has been negative since March 26, and as of this writing, MVRV is hovering around -20%.
This indicates that holders would have experienced a loss of nearly 20% during this period. In contrast, earlier this year, around February, his MVRV was as high as 11%.
Source: Santiment
Similarly, Polygon’s MVRV has been negative since March 17, with a press time value of approximately -19.6%. This suggests that a purchaser within this period will face a loss of 19% or more on his LINK as well.
These negative MVRV values could indicate an upcoming price correction for both LINK and MATIC. The decline could also encourage new traders to enter the market.
LINK and MATIC continue to fall
Analysis of LINK on the AMBCrypto daily timeframe chart showed that it is oversold at the time of article.
This conclusion is drawn from the fact that the Relative Strength Index (RSI) is below 30, suggesting a strong bearish trend and an oversold situation.
This condition could signal a potential price correction in line with the 30-day MVRV indicator. At the time of this writing, Chainlink had increased slightly in price and was trading at around $13.
A look at the chart also reveals that the stock had previously fallen for three consecutive days, resulting in a decline of more than 6%.
Source: TradingView
MATIC was experiencing a similar trend. As of this writing, the RSI is below 30, indicating an oversold situation and a strong bearish trend. A slight decline was observed, trading around $0.6.
This decline marked the fourth consecutive day of declines for MATIC. The long moving average (blue line) is currently acting as resistance and reflects the current poor price conditions.
Source: TradingView
Trader interest wanes
Chainlink open interest analysis coin glass Interest has shown to have decreased over the past few days. Looking at the graph, you can see that he is down over $100 million from the beginning of the week to now.
As of this writing, LINK open interest is approximately $164 million, down from an initial value of over $276 million at the beginning of the week.
Whether it’s realistic or not, the LINK market capitalization in BTC terms is as follows:
Similarly, Polygon’s open interest declined by more than $100 million during the same period.
As of this writing, MATIC open interest was approximately $172 million, down from over $294 million at the beginning of the week. This suggests that capital flows into these assets are decreasing.
