Despite the ongoing correction in the cryptocurrency market, key metrics indicate that XRP and Dogecoin (DOGE) maintain a bullish long-term outlook. One significant indicator is the Mean Dollar Invested Age (MDIA), which reveals the average age of invested dollars in the network. This metric helps determine whether coins are actively circulating or remaining dormant.
Declining MDIA Signals Increased Activity
The current decline in MDIA suggests that older, dormant coins are re-entering circulation. This increased network activity often coincides with bullish trends, as seen during the 2017 and 2021 bull markets.
Bitcoin: MDIA has dropped 31% over the past 60 weeks to 439 days.
XRP: MDIA decreased 22% in just 14 weeks to 865 days.
Dogecoin: Experienced the largest decline, dropping 31% in only eight weeks to 370 days.
This trend highlights heightened activity within the XRP and DOGE networks, supporting their potential for long-term growth.
XRP: Consolidation Phase and Key Levels
Following its recent rally, XRP has entered a consolidation phase, forming a descending channel that may pave the way for its next move. Key levels to watch:
Support: $2.20 and $1.90.
Resistance: Reclaiming the $2.50 level could lead to a move towards $2.80.
A break below the support levels could result in further declines. However, the improving network activity indicates a strong foundation for long-term growth.
Dogecoin: Short-Term Bearish Signal but Recovery Potential
DOGE recently broke below its upward channel, signaling a short-term bearish trend. However, MDIA shows significant coin movement within the network, which could support long-term recovery. Key levels to monitor:
Support: $0.38 with a stronger backup at $0.31.
Resistance: A recovery to $0.44 could restore DOGE's bullish trajectory.
MDIA's Historical Role and Long-Term Outlook
Historically, rising MDIA has coincided with the end of bullish cycles, while declining MDIA supports prolonged upward market trends. The decreasing MDIA for both XRP and DOGE suggests that these assets remain well-positioned for long-term growth.
The engagement of long-term holders strengthens the overall resilience of these networks, increasing the likelihood that XRP and Dogecoin will stay on a bullish path despite short-term volatility.
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