Cardano showed signs of entering a bull market, while XRP lacked the momentum to sustain a long-term uptrend.
At the time of writing, Bitcoin (BTC) was priced at $70,200, just below 5% from its peak of $73,700. Additionally, ETF inflows remained robust.
A recent Santiment post on X (formerly Twitter) highlighted the increased activity of previously inactive wallets, resulting in the circulation of older BTC.
Cardano has Initiated a Bullish Trend
The distinction lies in the Mean Dollar Invested Age (MDIA), which considers the purchase price of dormant BTC or any other asset. An increase in an asset’s MDIA is typically seen as normal, indicating that coins are becoming more dormant over time as holders prefer to hold onto them.
However, prolonged periods of high MDIA may indicate stagnancy in the network, making it challenging for prices to sustain upward momentum. Conversely, a decrease in MDIA suggests that previously dormant coins are becoming active, which is desirable for investors seeking continued price appreciation.
Cardano’s Mean Dollar Invested Age (MDIA) in a 5-year timeframe has been increasing since July 2021. However, in early March, there was a significant drop in this metric, which was seen as positive news for long-term investors.
A decrease in stagnant ADA coins often marks the beginning of a robust bull market that could extend over several months. The last time Cardano’s MDIA showed a consistent downtrend was in July 2020, coinciding with ADA’s price surge from $0.09 to $3.1 before experiencing a correction.
While the weekly Relative Strength Index (RSI) indicated a series of lower highs, typically considered a bearish divergence, this isn’t necessarily a reliable trading signal during the price discovery phase. However, in the current scenario, there is no evidence of such lower highs on the weekly RSI.
March 2024, Cryptoniteuae
