In the past month, the dollar average investment age (MDIA) for the popular crypto coin DOGE has been on an upward trend, according to data from Santiment.
However, in recent days, according to the MDIA, the average investment in the DOGE has dropped from 264 days (on July 18) to 206 days (on July 22).
the MDIA it is described as the average age of all coins/tokens on the blockchain weighted by purchase price. When the MDIA of a crypto asset spikes, the addresses where the assets are kept become increasingly inactive over time.
The longer the uptrend continues, the greater the price stagnation will be. Conversely, when a coin’s MDIA starts to drop, it means that previously dormant wallet addresses have started “moving” coins. This is usually indicative of a rebound in the price of said asset.
Is this self-fulfilling prophecy accurate in the case of the DOGE?
On July 18, the DOGE was trading at $0.064. Since the coin’s MDIA crash, DOGE price posted an 11% rally.
At press time, the token changed hands at $0.07113. In the same period, the token’s trading volume also doubled, rising from $564.79 million to $1.01 billion as of July 21.
On a daily chart, the coin’s relative strength index (RSI) has been trending up since July 18. This is indicative of increased buying pressure for the DOGE in the last four days. At time of writing, the indicator was seen in an uptrend at 56.59.
Dogecoin has seen significant chain traction in the period under review. For example, the index of the number of unique addresses that made DOGE transactions between July 18 and 20 increased by 15%.
However, this has seen a 48% decline in the last two days. At the time of this writing, the daily active addresses on the DOGE network were 49,118 addresses.
Furthermore, between July 18 and 21, the total amount of DOGE on all transactions completed within that period increased by more than 600%. In the last 24 hours, a 98% decrease in this metric was recorded.
Seen taking advantage of rising prices, whales increased transactions between July 18 and 20. In this period, the transaction count of whales over $100,000 grew by 30%.
At the time of writing, it stood at 41. For transactions over $1 million, the count increased to a high of 98 transactions on July 19. Viewed at five at the time of publication, a 94% decrease was recorded.
With a market cap of $9,398,713,378 and ranked number ten on CoinMarketCaps ranking of cryptocurrencies with the largest market capitalization, Dogecoin remains the largest meme coin in terms of market capitalization.