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XRP and DOGE Prices ‘Wake Up’ According to This New Metric

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Member Santiment analyzed popular cryptocurrencies such as XRP and Dogecoin (DOGE) and discovered that the prices of these coins are starting to wake up. To conduct the research, the analyst used an unusual indicator called Mean Dollar Invested Age, which tracks the average age of all blockchain assets, weighted by the purchase price, or, more simply, the average age of investment in an asset.

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The indicator works very simply: if its value grows, it means that the asset is not moving and its storage is becoming more and more inactive. This usually leads to the stagnation of the cryptocurrency price, because the greater the number and age of real coins, the less its price is able to grow.

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If the average age of investments in dollars falls, this means that previously dormant addresses are starting to wake up and move the cryptocurrency, which, in turn, signals possible positive price changes soon.

Analysis of XRP and DOGE

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Until this week, the ratio of MDIA to XRP had been steadily rising for three months, after which there was a sharp drop of more than 10%, the biggest drop since December 2021. Then in December, the price of XRP reacted with a 19% gain during the week. The current drop in MDIA is also linked to recent warnings of suspicious activity around XRP.

Source: Saint

The same applies to Dogecoin (DOGE), whose MDIA value has fallen by more than 21.6% over the past three days. At the same time, the author notes that the fall may continue, which means DOGE should be closely monitoredgiven the habit of the coin to grow in value.

Source: Saint

MDIA is a truly impressive metric, but the cryptocurrency market is notoriously unpredictable in nature, so it would be wrong to rely on just one tool. In any case, it is better to build logical chains on your own, but such metrics are definitely worth keeping in mind.



Credit : u.today

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