Dogecoin (DOGE) Rally Faces Headwinds as Long-Term Holders (LTHs) Start Selling

Dogecoin (DOGE) has seen a modest recovery in price recently, posting a 36% rise this week. However, this rally faces potential obstacles

Dogecoin (CRYPTO: DOGE) has seen a modest recovery in price recently, posting a 36% rise this week. However, this rally faces potential obstacles, as new data from AtomicPRisom shows that long-term holders (LTHs) have begun selling their holdings in significant volumes.

This selling trend could create volatility and hinder Dogecoin’s ability to maintain its recent gains.

Dogecoin Key Investors Take Profit

The Age Consumed metric, which tracks the last time coins were moved, has shown a sharp spike, signaling that LTHs are selling their holdings at a pace not seen since June 2023. This increase in selling activity marks the heaviest selling in almost two years, highlighting a shift in investor behavior.

The Age Consumed metric, which tracks the last time coins were moved, has shown a sharp spike, signaling that LTHs are selling their holdings at a pace not seen since June 2023. This increase in selling activity marks the heaviest selling in almost two years, highlighting a shift in investor behavior.

LTHs are often viewed as the backbone of a cryptocurrency, and their decision to sell could introduce heightened volatility in the market.

As LTHs begin to liquidate their positions, this selling pressure could undermine the current rally. The reduction in holdings from long-term investors may also raise concerns among shorter-term traders, creating uncertainty.

The overall macro momentum for Dogecoin is showing mixed signals. According to the Ichimoku Cloud indicator, Dogecoin continues to show bearish momentum despite the recent price increase.

The overall macro momentum for Dogecoin is showing mixed signals. According to the Ichimoku Cloud indicator, Dogecoin continues to show bearish momentum despite the recent price increase.

While the candlesticks are above the cloud, indicating a potential uptrend, the pressure from LTH selling could reverse this momentum. According to the analysis, if the price moves below the cloud, it would signal a continuation of the bearish trend.

While the Ichimoku Cloud’s position suggests some positive movement, the sustained selling by LTHs could quickly dampen any optimism. If this selling pressure continues, it could lead to a reversal in price momentum, keeping Dogecoin from maintaining its recent gains.

Dogecoin Price Needs To Secure Its Gains

The recent rally in Dogecoin’s price, which saw it surge by 36% this week, could be setting the stage for a decline below $0.200.

The cryptocurrency, known for its lively online community, is currently trading at $0.234, approaching a critical support level at $0.220. A fall below this level could lead to a decline towards $0.198, wiping out a portion of the recent gains.

The cryptocurrency, known for its lively online community, is currently trading at $0.234, approaching a critical support level at $0.220. A fall below this level could lead to a decline towards $0.198, wiping out a portion of the recent gains.

This scenario would unfold if the selling pressure from LTHs outpowers the bullish momentum, potentially triggering a further decline in price.

However, if Dogecoin manages to secure $0.220 as support and rebounds off this level, it could attempt to flip $0.245 into a support level.

However, if Dogecoin manages to secure $0.220 as support and rebounds off this level, it could attempt to flip $0.245 into a support level.

A successful move above $0.245 would pave the way for a rise to $0.268, allowing Dogecoin to invalidate the bearish outlook and maintain its upward trajectory.