In the last month, the Mean Dollar Invested Age (MDIA) for the popular crypto meme coin, DOGE, has been on an uptrend, according to data from Santiment.
However, in the last few days, according to the MDIA, the average investment in the DOGE has dropped from 264 days (on 18 July) to 206 days (22 July).
The MDIA is described as the average age of all coins/tokens on the blockchain weighted by the purchase price. When the MDIA of a crypto asset shoots up, the addresses where the assets are held become more and more dormant over time.
The longer the uptrend continues, the longer the stagnancy in price. Conversely, when a coin’s MDIA starts to drop, it means that wallet addresses previously dormant have commenced ‘moving’ the coins around. This is usually indicative of an uptick in the price of such an asset.
Is this self-fulfilling prophecy accurate in the case of the DOGE?
On 18 July, the DOGE traded at $0.064. Since the fall in the coin’s MDIA, the price of DOGE registered an 11% uptick.
At press time, the token exchanged hands at $0.07113. In the same period, the token’s trading volume also doubled as it went up from $564.79 million to $1.01 billion as of 21 July.
On a daily chart, the coin’s Relative Strength Index (RSI) has taken on an uptrend since 18 July. This is indicative of an increased buying pressure for the DOGE in the last four days. At the time of writing, the indicator was spotted in an uptrend at 56.59.
Dogecoin has recorded significant on-chain traction in the period under review. For example, the index for the number of unique addresses that transacted DOGE between 18 July and 20 July rose by 15%.
However, this has seen a 48% decline in the last two days. At the time of writing, daily active addresses on the DOGE network stood at 49,118 addresses.
Also, between 18 July and 21 July, the aggregate amount of DOGE in all transactions completed within that period rose by over 600%. In the last 24 hours, a 98% decline in this metric was logged.
Spotted taking advantage of the price uptick, the whales ramped up transactions between 18 July and 20 July. In this period, the count for whale transactions above $100 thousand grew by 30%.
At the time of writing, this stood at 41. For transactions above $1m, the count rose to a high of 98 transactions on 19 July. Spotted at five at press time, a 94% decline was recorded.
With a market capitalization of $9,398,713,378 and ranked number ten on CoinMarketCap’s ranking of cryptocurrencies with the largest market capitalization, Dogecoin is still the largest meme coin in terms of market capitalization.