Did you know that dormant cryptocurrency wallets are coming back to life? According to analyst Vijay Gir, this is more than just an interesting trend. Recent changes in the Average Dollar Investment Age (MDIA) for Bitcoin (BTC), XRP and Dogecoin (DOGE) indicate something important. They point to a possible market rally. According to the analyst, these movements are not random. They indicate increased activity that could shake things up for investors. Let’s take a closer look to understand which dormant coins are moving and why it matters.
What is MDIA and why is it important?
According to the analyst, MDIA, or Average Dollar Investment Age, measures how long coins sit idle in wallets. You can think of it as tracking the “age” of money. When the MDIA drops, it means that coins are being moved more often. This usually reflects increased confidence or readiness to trade. Why is this important? According to the analyst, more movement means higher liquidity, which often triggers trading activity. In the past, a low MDIA has often signaled bullish trends in the market. On the other hand, a rising MDIA indicates that coins are standing still and usually signals market uncertainty or a bearish phase. According to the analyst, the numbers show us the following:
- Bitcoin (BTC): Over the past 60 weeks, BTC’s MDIA has fallen by 31%. This indicates significant wallet activity after a period of inactivity.
- XRP: In just 14 weeks, XRP’s MDIA has fallen by 22%. Compared to Bitcoin, this indicates faster circulation.
- Dogecoin (DOGE): DOGE’s MDIA has fallen 31% in just eight weeks. This sharp drop points to aggressive moves by long-term holders.
Are Dogecoin, XRP and BTC bearish?
According to the analyst, the MDIA lines on all these networks are bearish. This is important because it signals more market activity and possible price increases. In the past, this pattern has often aligned with price increases during bull runs. For example, both the 2017 and 2021 rallies showed similar trends before prices rallied. Looking back, we see that major bull markets have always coincided with the decline of the MDIA. This happened in 2017 and again in 2021.
When holders start moving their coins, it’s usually a sign of growing confidence in the future of the market. However, the opposite is also true. A rising MDIA tends to signal the end of bullish phases as coins become dormant again. What does this mean for investors right now? While short-term price fluctuations are inevitable, these MDIA trends point to optimism in the medium and long term. As a result, according to the analyst, dormant coins are moving, which is a good sign of market momentum.
To stay up-to-date with the breaking news, follow us on Twitter, Facebook, and Instagram. Join our Telegram and YouTube channel
