XRP and DOGE prices may surge 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 were 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 extremely simply: if its value grows, this means that the asset is not moving and its storage becomes more and more dormant. Usually, this leads to stagnation of a cryptocurrency’s price because the greater the number and age of unmoving 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 insights
Until this week, MDIA to XRP had been rising steadily for three months when it saw a sharp decline of more than 10%, the biggest drop since December 2021. Then in December, the XRP price reacted with a 19% increase during the week. The current fall in MDIA also relates to recent alerts on suspicious activity around XRP.
The same applies to Dogecoin (DOGE), whose MDIA value has dropped more than 21.6% in the last three days. At the same time, the author notes that the fall may continue, which means DOGE should be watched attentively, given the coin’s habit of surging 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.
