XRP and DOGE prices may rise in double digits if this metric works
A member of Santiment analyzed popular cryptocurrencies like XRP and Dogecoin (DOGE) and found 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 purchase price or, more simply, the average age of an investment in assets.
The indicator works in an extremely simple way: if its value increases, it means that the asset is not moving and its storage is becoming more and more inactive. Usually, this leads to stagnation in the price of a cryptocurrency because the greater the number and age of immobile coins, the less its price is able to grow.
If the average age invested in dollars is decreasing, it means that previously inactive addresses are starting to wake up and move the cryptocurrency, which in turn signals possible positive price changes that are imminent.
XRP and DOGE Information
Until this week, the MDIA to XRP had been rising steadily for three months when it experienced a sharp decline of more than 10%, the largest decline since December 2021. Then in December, the price of XRP reacted with a 19% increase over the week. The current drop in MDIA is also related to recent alerts on suspicious activity around XRP.
The same goes for Dogecoin (DOGE), whose MDIA value has fallen more than 21.6% in the past three days. At the same time, the author notes that the fall may continue, which means DOGE should be watched carefullygiven the coin’s habit of increasing in price.
MDIA is truly an impressive metric, but the crypto market, like all we know, is an inherently unpredictable place, so relying on just one tool would be wrong. Either way, it’s best to build logical chains yourself, but it’s definitely worth keeping these metrics in mind.