Inactive Dogecoin (DOGE) tokens are moved after recent 19% drop.
The leading memecoin Dogecoin (DOGE) has recently seen an increase in activity, with the movement of tokens that had been inactive for a long time. These tokens have begun to reactivate after a 19% drop in price since reaching a three-year high of $0.48 on December 6.
This movement of tokens is a bullish sign as it indicates that previously inactive DOGE tokens are back in circulation. This increases network activity and prepares Dogecoin for a rebound.
The on-chain metric in focus here is Mean Dollar Invested Age (MDIA), which has been trending downward in recent weeks. This metric measures the average age of tokens in a network weighted by their purchase price, reflecting how long they have remained in wallets.
When MDIA rises, it means that tokens are staying longer in wallets, indicating reduced activity on the network and often signaling market consolidation.
On the other hand, a declining MDIA indicates an increase in network activity as inactive tokens re-enter circulation, often signaling bullish momentum.