Dogecoin

Dollar

bullish

The on-chain analytics firm Santiment has flagged <a href="https://yellow.com/asset/doge" rel="noopener noreferrer nofollow">Dogecoin</a> and <a href="https://yellow.com/asset/xrp" rel="noopener noreferrer nofollow">XRP</a> as showing promising bullish signs through a lesser-known metric. This insight reveals potential market optimism amid a shifting Mean Dollar Invested Age for several cryptocurrencies.
Mean Dollar Invested Age (MDIA) is gaining <a href="https://www.newsbtc.com/dogecoin-2/dogecoin-xrp-flashing-overlooked-bullish-santiment/" rel="noopener noreferrer nofollow">attention</a> in the cryptocurrency sector. It tracks the average age of dollars invested in a cryptocurrency, similar to the Mean Coin Age that measures the average age of tokens in circulation. The MDIA converts coins to their USD value based on their last network movement, offering a fresh perspective on market dynamics.
A recent chart highlights this metric's trend across major digital assets: <a href="https://yellow.com/asset/btc" rel="noopener noreferrer nofollow">Bitcoin</a>, XRP, Dogecoin, <a href="https://yellow.com/asset/eth" rel="noopener noreferrer nofollow">Ethereum</a>, and <a href="https://yellow.com/asset/link" rel="noopener noreferrer nofollow">Chainlink</a>. Notably, Bitcoin, XRP, and Dogecoin have experienced a pronounced decline in MDIA, signaling a potential shift.
A decline in MDIA indicates activity among stagnant, long-term wallets. These wallets are returning dormant coins to the market, thus boosting network activity. While this could suggest selling by older stakeholders, it might also mean new investments are pouring in to acquire these dormant coins.
Historically, such declines in MDIA have aligned with bullish market phases. Santiment highlights that past bull markets only paused when assets' mean ages began increasing again.
Among the cryptocurrencies with a notable decrease, Dogecoin particularly stands out. Over the past eight weeks, the average dollar invested in the memecoin has become 31% younger, reflecting a rapid shift in investor behavior. As for market prices, Dogecoin is currently valued around $0.403, experiencing a slight decline of nearly 2% over the last week. Yet, the evolving MDIA metric suggests an undercurrent of optimism in the market.

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