Dogecoin and XRP Show Bullish Trends in Mean Dollar Invested Age
The on-chain analytics firm Santiment reports bullish signals for Dogecoin and XRP based on the Mean Dollar Invested Age metric.
Mean Dollar Invested Age Trends for Key Cryptocurrencies
Santiment's recent analysis highlights trends in the Mean Dollar Invested Age for major cryptocurrencies, including Bitcoin (BTC), XRP, Dogecoin (DOGE), Ethereum (ETH), and Chainlink (LINK).
The "Mean Dollar Invested Age" measures the average age of dollars invested in a cryptocurrency, similar to the Mean Coin Age, which tracks the average age of tokens in circulation. The Mean Dollar Invested Age uses on-chain data to analyze when coins were last moved and converts them to USD values based on their last transaction price.
Recent data shows a decline in the Mean Dollar Invested Age across these five cryptocurrencies, particularly notable for Bitcoin, XRP, and Dogecoin, while Ethereum and Chainlink experienced smaller declines.
A declining Mean Dollar Invested Age indicates that older wallets are reactivating dormant coins, suggesting increased network activity. This may imply either selling by long-term holders or new capital entering the market to purchase these coins.
Santiment notes that historically, this trend has been bullish, as observed during previous bull markets in 2017 and 2021, which continued until the mean ages began to increase again.
Among the three cryptocurrencies with significant declines, Dogecoin has shown the most pronounced decrease, with the average dollar invested becoming 31% younger over the past eight weeks.
DOGE Price Overview
As of now, Dogecoin is priced at approximately $0.403, reflecting a nearly 2% decline over the past week.
