A Santiment member analyzed the price movements of two altcoin projects. Accordingly, the analyst said that Dogecoin and Ripple price charts are waking up. He then explained to investors what to expect.
“These two altcoins are waking up”
The analyst, who is among the members of Santiment, used a little-known indicator to analyze altcoin prices. This indicator, called Average Dollar Investment Age, examines the average age and purchase price of all Blockchain assets. The indicator that the Santiment member conducted his research, it seems, has yielded important results. The data announced by the analyst and the levels he showed managed to attract the attention of investors. Accordingly, the expert underlined that a wake up in DOGE and XRP prices has begun.
In fact, the model used by the analyst works quite simply. The value on the indicator rises or falls. If it goes up, it means the asset is not moving. It also reveals that accumulations are becoming more and more inactive. The rise of the indicator indicates that the volatility of the price of the altcoin asset has also decreased as the movement has decreased. The higher the supply and age of the cryptocurrency, the price is affected accordingly. So it has lower volatility. If the values on the indicator decrease, the opposite happens. So the cryptocurrency is “waking up”, so to speak. It shows that wallets that have been holding their assets for a long time are starting to move. As a result, it reveals the upside potential in price.
XRP and DOGE signal bullish
Values in this indicator for XRP saw a sharp drop of more than 10%. This decrease represents the biggest decrease since December 2021. However, the indicator has been on the rise for 3 months as seen in the chart below. In the last drop in December, the altcoin price reacted with a 19% increase over the week. cryptocoin.com As we have reported, the decreases in the indicator reveal an upward potential in the price. Additionally, the current drop in the indicator seems to be related to recent news regarding tens of millions of dollars of suspicious activity around XRP.
However, Dogecoin (DOGE) also displays a similar chart to XRP. DOGE’s Average Age of Dollar Investment fell over 21.6%. Santiment member underlines that this decrease may increase in the coming days. He also suggests that the continuation of the decline in the indicator could trigger a massive rally. The analyst is based on the meme coin’s price increase habit and invites investors to watch DOGE.
What to expect from the indicator?
The Average Dollar Investment Age indicator stands out as a very impressive model. However, it should not be forgotten that altcoin markets are quite volatile. As experienced traders know, anything can happen in the cryptocurrency market at any time. As a result, it is possible to rely on a single indicator or analysis to produce false results. However, paying attention to such scientific indicators will help you get an idea about your investments.
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