XRP dormant coin on the move: the reason behind Price?

Table of Contents

Data on the chain indicates that older XRP tokens have recently returned to circulation. This is a potential indication that long-term holders are making profits.

XRP average dollar investment age has recently decreased

According to data from on-chain analytics firm Santiment, the XRP network has seen signs of movement from the hands of veterans. Two important metrics highlight this trend. The average investment age and age is consumed. These first average dollars invest their age and track the average age (in days) of all dollars invested in cryptocurrency. The “age” of the coin or the USD value invested in it is tracked from the points of the last transaction of the coin.

For example, if a coin remains dormant for 10 days, it accumulates 10 coin days. If the price was $2 at the time of the last movement, there will be a $20 coin day. So, in this case, the average dollar is investing age per dollar. So it’s a 10-coin day.

So, what happens when a coin that has been dormant for a certain period of time finally moves? Both the date of the coin and the associated date of the coin dollar will return to zero. In other words, that age is “consumed.” The second indicator of relevance here, age, is consumed and tracks the days of coins being destroyed in this way throughout the network each day.

Below is a chart showing how the average investment age and age of XRP has changed over the past year.

XRP average dollar investment age

As seen in the graph, the XRP average investment age has witnessed a decline in the past few weeks, indicating that the average dollar invested in assets is becoming younger. The indicator value reached 593 days, which is 91 days lower than a month ago.

The age consumed has seen some notable spikes along with this decline. This means that long term holders are in motion. Long-term holders refer to Hodlers in the market who hold for a long period with strong confidence and accumulate many coin days in the process.

When these diamond hands finally move, the age consumed tends to register spikes as large coin day destruction accompany them. It is clear from the charts that most of the massive spikes have come recently, just as when XRP reached the top of its prices. This may be a potential indication that long-term holders are cashing out at gatherings.

Since then, cryptocurrency has plummeted. It is still unclear at present whether the consumption age will continue to skyrocket in the near future or if Hodler is finished for now.