Long-term DOGE Holders Are Selling as DOGE Price Rises 36%: Has the Price Surge Ended?

Dogecoin has seen a modest price recovery recently, rising 36% this week. However, this bullish trend faces potential obstacles, as long-term holders (LTH) have begun to sell their holdings in large volumes. This selling trend could create volatility, hindering Dogecoin's ability to maintain its recent gains. Dogecoin's Major Investors Make Profits The Age Consumed index of Dogecoin has surged, signaling that LTHs are selling their holdings at an unprecedented rate since June 2023. This increase in selling activity marks the strongest sell-off in nearly two years, highlighting a shift in investor behavior. LTH is often considered the backbone of cryptocurrency, and deciding to sell them can cause greater volatility in the market. When LTH begins to liquidate their positions, this selling pressure can weaken the current bullish trend. The reduction in holdings by long term investors can also raise concerns for short 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. While the candles are above the cloud, indicating potential bullish trend, pressure from LTH selling could reverse this momentum. While the Ichimoku Cloud's position shows some positive movement, the continuous selling by LTH could quickly dampen optimism. If this selling pressure continues, it could lead to a reversal of the bullish trend, causing Dogecoin to not maintain its recent gains.

The price of Dogecoin needs to ensure its bullish level. Although the price of Dogecoin has increased by 36% this week, it remains susceptible to falling below $0.200. The recent bullish surge, while impressive, is still vulnerable to ongoing selling pressure from long term holders. Therefore, Dogecoin may face challenges in maintaining its price above the current level. Trading at $0.234, Dogecoin is approaching the important support level of $0.220. If the price cannot hold this level, it may drop to $0.198, erasing a significant portion of the recent gains. This indicates that selling pressure is outweighing the bullish momentum, potentially leading to the next downturn.

However, if Dogecoin can hold the support level of $0.220 and recover from this level, it may attempt to flip the $0.245 level into support. A successful move above 0.245 dollars will pave the way for a rise to 0.268 dollars, allowing Dogecoin to negate bearish prospects and maintain an upward trajectory.