DOGE, XRP Bulls Have Reason for Hope: New Santiment Analysis

Bullish Signs in Dogecoin and XRP: Analysis by Santiment

On-chain analytics provider Santiment has identified promising bullish indicators in Dogecoin and XRP through the Mean Dollar Invested Age (MDIA) metric. This metric provides insights into market sentiment by tracking the average age of invested funds in a cryptocurrency.

MDIA has shown a significant decline for Bitcoin, XRP, and Dogecoin, indicating a potential shift in market dynamics. The decline in MDIA suggests that stagnant wallets are becoming active, releasing dormant funds into circulation. This could be a sign of selling by long-term investors or an influx of new investment acquiring these dormant coins.

Historically, similar declines in MDIA have coincided with bullish market phases. Santiment notes that previous bull markets only paused when the mean ages of assets began to increase again.

Dogecoin stands out among the cryptocurrencies with a notable MDIA decrease. Over the past eight weeks, the average dollar invested in Dogecoin has decreased by 31%, indicating a rapid change in investor sentiment. Despite a recent price decline, the evolving MDIA metric suggests an underlying optimism in the Dogecoin market.