Long-term holders are selling Dogecoin. Has the DOGE rally ended?

Dogecoin DOGEUSD has risen by 36% over the week. However, this rally may face difficulties as long-term holders (LTH) have started actively selling their assets.

A wave of selling by long-term holders may cause volatility in Dogecoin. This could prevent DOGE from protecting its recent gains.

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Key investors in Dogecoin lock in profits

The Age Consumed metric showed a sharp spike. It indicates that 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 shift in investor behavior.

Long-term holders are often considered the backbone of cryptocurrency. Therefore, their decision to sell can increase volatility in the market. When LTHs begin to liquidate their positions, this selling pressure can weaken the current rally. The reduction of assets by long-term investors can also cause concern among short-term traders, amplifying uncertainty.

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 uptrend. 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 its recent gains.

The DOGE price needs to secure its achievements

Dogecoin has risen by 36% this week, but it may still drop below $0.200. The recent increase is impressive, but the price remains under pressure from long-term holders. This could hinder the meme coin from maintaining current levels.

Currently, DOGE is approaching important support at $0.220. If this level is breached, the price risks falling to $0.198. This would negate a significant portion of recent gains and weigh down the bullish momentum. In this case, further declines are possible.

! Dogecoin Price Analysis.If Dogecoin manages to hold on to $0.220 and rebound, the token may try to turn $0.245 into a new support level. A break above $0.245, this could lead to a rise to $0.268. Such success will help the cryptocurrency avoid a negative scenario and continue to grow.

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