Despite the recent market-wide correction, a key network indicator suggests a bullish long-term outlook for both XRP and Dogecoin. This indicator, MDIA (Median Days of Inactivity), tracks a network’s average age of investment dollars.
A decline in MDIA typically indicates a reintroduction of dormant coins into circulation, signaling increased network activity. This trend has historically been linked to bullish market movements, as seen during previous bull runs in 2017 and 2021.
Also Read: Why RLUSD Matters for Ripple and the Future of Finance
Declining MDIA Points to Growing Activity in XRP and Dogecoin
Over the past 60 weeks, Bitcoin’s MDIA has dropped by 31%, signaling less activity from older coins on its network. MDIA has shortened to 865 days for XRP, which is 22% less than its initial value after just 14 weeks.
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However, Dogecoin has crashed the most, by 31% in just eight weeks, putting the token’s MDIA at 370 days. These transitions can be seen as evidence of a higher activity level on these networks as these previously idle coins move around.
Source: Trading View
This drop in MDIA is regarded as market maturing or an increase in market activity, thus indicating that XRP and Dogecoin could return in the long run. Although there may be short-term changes in the price of these brands currently, the growth in activity within these networks may lead to long-term value. This trend opens up the possibility that both cryptos may be set for further upside as more and more holders start using their tokens again.
XRP’s price, following a recent surge, is currently experiencing consolidation in a descending channel. Key support levels to watch are $2.20 and $1.90. If XRP rebounds to $2.50, the potential for a push towards $2.80 exists, but volatility may persist in the near term. Dogecoin, on the other hand, has broken below its ascending channel and entered a bearish phase. However, the rising MDIA suggests this could be a temporary setback, with long-term growth still likely.
The data from MDIA indicates that both XRP and Dogecoin have the potential for substantial growth, driven by increasing network activity and long-term investor confidence.
Also Read: Dogecoin Holds Support as Solana Hits New All-Time High
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.