Dogecoin, XRP Flashing 'Overlooked' Price Increase Signal, Santiment Reveals

Santiment chain analysis company has revealed that Dogecoin and XRP are signaling price increases according to some often overlooked data. Recently, Dogecoin, XRP, and Bitcoin have experienced a decline in the average age of dollar investments. In a new post on X, Santiment discussed the latest trend in the average dollar investment age index of some of the top cryptocurrencies in the field of digital currency. "Mean Dollar Invested Age" tracks the average age of each dollar held that has been invested in cryptocurrency. This index is similar to Mean Coin Age, a metric that measures the average age of tokens in circulation. Mean Coin Age uses data on the blockchain to determine the last time each coin was moved on the network and calculates the average value for the supply based on that data. Mean Dollar Invested Age operates on the same data, except it converts the coins to their USD value based on the price at their last move. Here is a chart showing the trend of average age of investment in the top digital assets: Bitcoin (BTC), XRP (XRP), Dogecoin (DOGE), Ethereum (ETH), and Chainlink (LINK).

As shown in the chart above, Mean Dollar Invested Age has recorded a recent decline for both cryptocurrencies, but the scale of decrease is relatively small in the case of Ethereum and Chainlink. On the other hand, Bitcoin, XRP, and Dogecoin have witnessed a significant decline in this index. In terms of the significance of the decreasing trend of this index, Santiment explains: When the average Age of Investment Path of a network decreases, it indicates that old, sluggish wallets (especially from key stakeholders) are bringing their inactive tokens back into circulation, increasing network activity. While this shows that older players may be selling, another way to look at this issue is the new capital flowing into the market, buying these inactive currencies and lowering the average age. Indeed, in terms of history, this model has proven to have a tendency to increase in value, as pointed out by the analytical company: This is one of the key indicators throughout the life cycle history of each currency that helps verify that a bullish market can and should continue. Similarly, the 2017 and 2021 bull markets did not stop until the average age of assets began to "increase" (age). Of the three asset classes witnessing a sharp decline in average investment age in dollars, Dogecoin stands out particularly in both scale and speed of decline; the average dollar investment in memecoins has dropped 31% over the past eight weeks. DYOR! #Write2Win #Write&Earn $DOGE {spot}(DOGEUSDT)