In a pattern to watch out for for investors of the popular altcoin Dogecoin (DOGE), historical data points to massive price change. In this model, an indicator for the average investment time stands out. Here are the details…
Price change for altcoin coming?
When a key indicator is analyzed historically, Bitcoin has shown a similar price trend four times. In the last month, the DOGE price increase has not been seen much, although there have been some fluctuations at regular intervals. According to Santiment Insights, there has been a huge drop in the token’s Average Dollar Investment Age. In just three days (July 18-21), the average investment in DOGE, the holding period, increased from 264 days to 207. According to analysts, this clearly indicates the possibility of a major price change in the near future. According to CoinMarketCap, DOGE price is down 2.26 percent in the last 24 hours at $0.06659. On a weekly basis, the token increased by about 3 percent.
DOGE’s average dollar investment age declines
More importantly, it is quite possible that further declines in the average dollar investment age are yet to come. This makes DOGE a sought-after favorite in the crypto trading space. According to Santiment, Dogecoin could go back to May levels in the blink of an eye. For this, it is necessary to keep an eye on the indicator (MDIA) in question. The average dollar investment age is defined as the average age of all coins weighted by the purchase price.
Simply put, the indicator is the average age of dollars invested in any token, in this case DOGE. If an asset’s average dollar investment age begins to decline, it could mean that a price increase is likely in the near future. Historically, Bitcoin’s average dollar investment age has fallen four times. According to data from Santiment, each time, there was a huge price increase afterward. This would be a good example to illustrate a large price change followed by a change in the average dollar investment age.
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