#HighlightPosts  Long-Term DOGE Holders Are Selling: Dogecoin Up 36% – Is the Rally Over?

Dogecoin  DOGEUSD  has been experiencing a modest price recovery recently, gaining 36% this week. However, this rally faces potential hurdles as long-term investors (LTHs) have begun selling in significant volumes.

This sell-off could create volatility, hindering Dogecoin’s ability to maintain its recent gains.

Dogecoin’s Major Investors Are Taking Profit

The Age Consumed metric for Dogecoin has increased sharply, suggesting that LTHs are being sold at a pace not seen since June 2023. This surge in selling activity is the most intense in almost two years, highlighting a shift in investor behavior.

LTHs are often seen as the backbone of a cryptocurrency, and a sell-off could create increased volatility in the market.

This sell-off could undermine the current rally as LTHs begin to liquidate their positions. Long-term investors reducing their holdings could also create anxiety and uncertainty among short-term traders.

Overall macro momentum for Dogecoin is showing mixed signals. Dogecoin is still trending down. While the candlesticks are above the cloud, LTH selling pressure could reverse this momentum.

While the position suggests some positive movement, the continued selling of LTH could quickly dampen any optimism. If this selling pressure continues, it could lead to a reversal in price momentum and prevent Dogecoin from maintaining its recent gains.

DOGE Price Must Secure Gains

Although Dogecoin’s price has gained 36% this week, it is at risk of falling below $0.200. While the recent rally is impressive, it is vulnerable to continued selling pressure from long-term investors. Therefore, Dogecoin may struggle to maintain its price above current levels.

Trading at $0.234, Dogecoin is approaching a critical support level at $0.220. If the price fails to hold this level, it could drop to $0.198, erasing a significant portion of recent gains.

This suggests that selling pressure is weighing on bullish momentum and could potentially trigger further declines.

However, if Dogecoin secures $0.220 as support and bounces off that level, it could attempt to turn $0.245 into a support level.

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