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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Dogecoin, XRP Flashing ‘Overlooked’ Bullish Signal, Santiment Reveals

Keshav Verma
Keshav Verma
6 months ago
3 mins read
Dogecoin & XRP

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The on-chain analytics firm Santiment has revealed that Dogecoin and XRP are flashing bullish signals in an often overlooked metric.

Dogecoin, XRP, & Bitcoin Recently Saw A Decline In Mean Dollar Invested Age

In a new post on X, Santiment has discussed the latest trend in the Mean Dollar Invested Age indicator for a few of the top coins in the cryptocurrency sector.

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The “Mean Dollar Invested Age” keeps track of the average age of every dollar the holders have invested into the cryptocurrency. This metric is similar to the Mean Coin Age, an indicator that measures the average age of tokens in the entire circulating supply.

The Mean Coin Age uses on-chain data to determine when every coin was last moved on the network and calculates the mean for the supply based on it. The Mean Dollar Invested Age works on the same data, except that it converts the coins to their USD value based on the price at their last movement.

Now, here is a chart that shows the trend in the Mean Dollar Invested Age for five top digital assets: Bitcoin (BTC), XRP (XRP), Dogecoin (DOGE), Ethereum (ETH), and Chainlink (LINK).

Dogecoin and XRP Mean Dollar Invested Age
The value of the metric appears to have sharply gone down for some of these coins | Source: Santiment on X

As displayed in the above graph, the Mean Dollar Invested Age has registered a decline for all five of these cryptocurrencies recently, but the scale of the drawdown has been quite small in the case of Ethereum and Chainlink.

On the other hand, Bitcoin, XRP, and Dogecoin have witnessed a very significant decrease in the indicator. As for what it means when this metric trends down, Santiment explains:

When a network’s Mean Dollar Invested Age line is moving down, it indicates that older, stagnant wallets (particularly from large key stakeholders) are circulating their dormant coins back into circulation, increasing network activity.

While this suggests that the older hands are potentially participating in selling, another way to look at it could be that new capital is flowing into the market, buying up these dormant coins and bringing the average age down.

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Indeed, it seems historically, the pattern has proven to be bullish, as the analytics firm has pointed out:

This is one of the key indicators throughout the history of each coin’s lifespan that helps validate that a bull market can and should continue. The 2017 and 2021 bull markets similarly did not come to a halt until assets’ mean ages started going “up” (getting older) again.

Out of the three assets that have seen a sharp decline in the Mean Dollar Invested Age, Dogecoin has particularly stood out for both the scale and the speed of the drawdown; the average dollar invested into the memecoin has become 31% younger over the last eight weeks.

DOGE Price

At the time of writing, Dogecoin is floating around $0.403, down almost 2% in the last seven days.

Dogecoin Price Chart
Looks like the price of the coin has plunged over the last couple of days | Source: DOGEUSDT on TradingView
Featured image from Dall-E, Santiment.net, chart from TradingView.com
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Read more

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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