Recently, a noticeable trend has been observed in the performance of the popular altcoin Chainlink (LINK). Analyst Ali Martinez, Santiment to your data Based on this, it revealed a rare occurrence in Chainlink’s performance.
Ali Martinez examined Chainlink’s Market Capitalization to Realized Value (MVRV) ratio and suggested that a correction usually occurs when this ratio exceeds 19%. The Market Cap/Realized Value ratio shows the relationship between the current market cap of a cryptocurrency and the sum of all past transaction prices. This ratio can be helpful in understanding whether an asset is overvalued or oversold.
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— Ali (@ali_charts) October 2, 2023
What is noteworthy is that this trend has been observed before for Chainlink. The analyst emphasized that such MVRV trends have occurred twice before in LINK, each time resulting in a significant correction. Therefore, he said, this could put pressure on LINK’s price and point to a correction in the near future.
Santiment’s data in question shows that the current MVRV rate over the 30-day period is now pegged at 20%. If history repeats itself, Chainlink is expected to give up some of its recent gains.
On the other hand, this downward trend is already evident in LINK’s current price performance. The altcoin is trading at $7.78, down 3.27% in the last 24 hours. This slight decline in LINK price contradicts the overall upward market trend and further confirms the MVRV analysis.
You can follow the current price movement here.
Source : the crypto basic