Dogecoin (DOGE) rose 36% over the week. However, this rally may face difficulties as long-term holders (LTH) have started actively selling their assets.
The wave of selling from long-term holders may cause volatility for Dogecoin. This could hinder DOGE from protecting its recent gains.
Key Dogecoin investors are taking profits.
The Age Consumed metric showed a sharp jump. It indicates that long-term holders (LTH) are selling their assets at an intensity not seen since June 2023. This is the most active selling in nearly two years, and it highlights a change in investor behavior.
Long-term holders are often considered the backbone of cryptocurrency. Therefore, their decision to sell could increase market volatility. When LTH begins to liquidate their positions, this selling pressure may weaken the current rally. Reducing assets from long-term investors may raise concerns among short-term traders, amplifying uncertainty.
Age Consumed Metric. Source: Santiment
The overall situation for Dogecoin shows mixed signals. The Ichimoku Cloud reflects bearish momentum. Currently, the candles are above the cloud, which may suggest a potential upward trend. However, sustained selling pressure from LTH could quickly dampen optimism. If this pressure continues, the price momentum could quickly reverse, and DOGE may not hold onto its recent successes.
Dogecoin and Ichimoku Cloud. Source: TradingView
DOGE needs to solidify its achievements.
Dogecoin increased by 36% this week, but it may still drop below $0.200. The recent rise is impressive, but the price remains under pressure from long-term holders. This could prevent the meme coin from maintaining current levels.
Currently, DOGE is approaching an important support level at $0.220. If it breaks this level, the price risks falling to $0.198. This would negate a significant portion of recent gains and outweigh bullish momentum. In this case, further declines are possible.
DOGE Price Analysis. Source: TradingView
If Dogecoin can hold at $0.220 and bounce back, the token may attempt to turn $0.245 into a new support level. A breakout above $0.245 could lead to a rise to $0.268. Such success would help the cryptocurrency avoid a negative scenario and continue its growth.
