Dogecoin Surges 36% This Week, Faces LTH Selling Pressure

Dogecoin (DOGE) has experienced a notable price surge, rising by 36% this week. However, this upward trend is facing potential challenges as long-term holders (LTHs) have begun selling their holdings in significant volumes. This selling activity could introduce volatility, making it difficult for Dogecoin to sustain its recent gains.

The Age Consumed metric for Dogecoin has shown a sharp increase, indicating that LTHs are selling at a pace not seen since June 2023. This marks the heaviest selling in almost two years, suggesting a shift in investor behavior. LTHs are often considered the backbone of a cryptocurrency, and their decision to sell could introduce heightened volatility in the market.

As LTHs start 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. While the Ichimoku Cloud indicator 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’s price has risen to $0.234, approaching a critical support level at $0.220. If the price fails to hold this level, it could fall to $0.198, erasing a significant portion of the recent gains. This would indicate that the selling pressure is overpowering the bullish momentum, potentially triggering a further decline. 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.