- According to the analytics firm, if this new metric turns out to be correct, the crypto world’s largest meme coin and a popular altcoin could rise by double-digit percentages.
A Santiment analyst, XRP and Dogecoin (DOGE) He analyzed popular cryptocurrencies such as To conduct the research, the analyst uses the average age of all blockchain assets weighted by the purchase price, or more simply, the average age of an asset investment. Average Dollar Investment Age (MDIA) He used a little-known indicator called
The indicator works extremely simply: 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 a stagnation in the price of a cryptocurrency because it is thought that the larger the number and age of non-moving coins, the less its price may increase.
If the Average Dollar Investment Age drops, it means that previously dormant addresses are starting to wake up and move the cryptocurrency, signaling possible imminent positive price changes.
XRP and DOGE predictions
It shows that XRP’s MDIA has been rising steadily for three months, until this week, before experiencing a sharp drop of more than 10 percent, the biggest drop since December 2021.
After that in December XRP price had reacted to the chart with a 19 percent increase over the week. The current decline in MDIA, XRP token It could also be related to recent warnings about suspicious activity around it. The XRP price then rose 19 percent over the week in December. The current drop in MDIA is also related to recent warnings of questionable activity surrounding XRP.
The same is true for Dogecoin (DOGE), whose MDIA has dropped more than 21.6 percent in the last three days. At the same time, the analyst states that the decline in the metric may continue, which means that given the coin’s price increase habit, DOGE is a cryptocurrency that should be watched carefully.
The MDIA is indeed an impressive metric, but as we all know, the crypto market is an inherently unpredictable place, so it would be wrong to rely on a single tool. In any case, it’s better to build logical chains on your own, but it’s definitely worth considering such metrics.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.