- XRP’s MDIA declines 22% in 14 weeks, signaling increased activity from dormant wallets.
- Ripple’s RLUSD stablecoin launch drives XRP price up 7% amid market-wide retrace.
- Whale activity surges as 2.66 billion XRP flows to Binance, the highest since April 2024.
The cryptocurrency market experienced a significant retrace this week, but XRP’s Mean Dollar Invested Age (MDIA) offers a bullish perspective. MDIA, a critical but often overlooked on-chain metric, measures the average age of capital invested in a network. XRP’s MDIA has notably declined, signaling increased activity from long-dormant wallets and suggesting a potential continuation of bullish momentum in the mid to long-term.
XRP’s MDIA Reflects Increased Network Activity
As per Santiment, an analytic firm, XRP’s Mean Dollar Invested Age is 865 days, a 22% decrease over the last 14 weeks. This decline indicates that the previous stagnant coins have been moved into circulation.
Such activity often correlates with heightened market optimism and precedes extended bullish trends. Historical data from the 2017 and 2021 bull runs reveal similar patterns, where bull markets persisted until MDIA began trending upward, signifying reduced network activity.
Additionally, Bitcoin (BTC) and Dogecoin (DOGE) are also exhibiting younger MDIA trends, declining by 31% over 60 weeks and 8 weeks, respectively. These changes highlight broader market activity, with XRP’s trajectory standing out for its rapid decline in a shorter timeframe.
Ripple’s Stablecoin Launch Boosts Sentiment
The New York Department of Financial Services has approved Ripple’s stablecoin RLUSD. Following this news, XRP surged nearly 7%, underscoring market enthusiasm. Despite the price jump, Cryptoquant’s on-chain data shows significant whale activity, with over 2.66 billion XRP transferred to Binance within 30 days. This marks the highest exchange inflow since April 2024, potentially reflecting profit-taking or anticipation of further volatility.
However, the influx of tokens into exchanges contrasts with the MDIA trend, suggesting that while some large holders are repositioning, overall network activity remains robust. This divergence reinforces the mid-term bullish outlook, as long-term holders appear to re-engage with the market.
Technical Indicators Align with Bullish Prospects
At $2.34, XRP gained 6.63% over the past 24 hours, with a 24-hour trading volume exceeding $24.4 billion. Key technical indicators further support a positive outlook.
XRP’s 1-hour RSI reads 54.45, indicating a neutral position and room for upward movement. Additionally, the MACD is trading above its signal line, hinting at short-term bullish momentum.