Crypto: Could Dogecoin Finally Break Out of its Stagnation?

Dogecoin (DOGE), the iconic crypto inspired by the Shiba Inu dog, could be on the cusp of a new uptrend. Recent analysis reveals a positive sign often overlooked by investors, suggesting a possible significant increase in DOGE’s value in the days ahead.

Crypto – Dogecoin, close to a new uptrend?

Mean Dollar Invested Age is an indicator that measures the average age of each dollar invested in a crypto. This index is similar to Mean Coin Age, which calculates the average age of tokens in circulation. Using on-chain data, Mean Coin Age converts coins into their USD value at the time of their last movement.

According to Santiment, the five leading cryptos – Bitcoin (BTC), XRP, Dogecoin (DOGE), Ethereum (ETH) and Chainlink (LINK) – all recorded a decline in their average age of invested dollars. However, this decline was particularly marked for bitcoin, XRP and DOGE.

• BTC: 439 days (31% younger in 60 weeks)
• XRP: 865 days (22% younger in 14 weeks)
• Dogecoin (DOGE): 370 days (31% younger in 8 weeks)

This indicates that older, stagnant wallets in the crypto market are putting their coins back into circulation. This increases network activity and can be interpreted in two ways: either HODLers are selling their coins, or new capital is entering the market, buying these dormant coins and thus reducing the average age. Dogecoin (DOGE) in particular, stands out for the speed and magnitude of this decline, suggesting increased activity and a possible price rise ahead. Historically, this trend has been a key indicator of the continuation of the bull markets of 2017 and 2021.

Future prospects 

In the short term, analysts predict that dogecoin could reach new heights if current trends continue. The recent increase in addresses holding large amounts of DOGE is a positive sign, indicating that investors are hoarding the crypto in anticipation of a future rise. What’s more, the general optimism on the crypto market could also be working in Dogecoin’s favor. As Ryan Lee, chief analyst at Bitget, also believes: 

Dogecoin could be on the verge of another rise, thanks to Elon Musk’s continued influence keeping DOGE in the spotlight, often triggering price hikes. Positive sentiment on the broader cryptocurrency market, particularly among memecoins, provides further impetus. From a technical point of view, indicators such as the Relative Strength Index (RSI) moving away from overbought conditions and the stabilization of prices around key moving averages point to a potential uptrend. If these trends continue, Dogecoin could be on the verge of a new uptrend.

All in all, Santiment’s analysis offers an optimistic outlook for the crypto market. However, investors should remain vigilant in the face of volatility and continue to monitor key indicators to make informed decisions.