Dogecoin’s bark is back! After some relative calm, the darling of the meme coins is full of life, rising 36% this week. But hold on a second, Shiba pack! This rally might not be a smooth sail. Rumblings on the blockchain have it that the old guard, the long-term Dogecoin holders, have started to sell off. Are they scared? Are they just taking a few profits? Or could they be making room for a newer age of DOGE enthusiasts? This point could mark the dawn or dusk for the dog-themed crypto.
This selling trend could create volatility, hindering Dogecoin’s ability to maintain its recent gains.
Dogecoin Key Investors Take Profit
Dogecoin’s heartbeat is speeding up. A seismic change is underway in the meme coin ecosystem with the “Age Consumed” metric exploding and indicating warnings in red. Dormant Dogecoin wallets of long-term holders are waking up with fury and rushing to unload hundreds and thousands, if not millions, of Doge to the market. This is not just a dip but a deluge. The last time Dogecoin had witnessed such a dramatic exodus was June 2023, and this one has outrun that. Well, we are talking about the most vehement selling pressure in practically two years. Are those early adopters losing interest, or is this merely a clever game? Whatever it may be, they say Dogecoin is being completely redrawn in front of the naked eye.
Long-term investors in cryptocurrencies: stabilizers of the markets, or ticking bombers? The very conviction of these holders imparts to them stability, while a mass exodus would have a seismic impact.
Long-term holders are beginning to book profits and set a snag in the rally. If these stalwart investors lighten their bags, then short-term arraigners may begin to go bearish, thereby adding uncertainty to the market.
Dogecoin Age Consumed. Source: Santiment
Dogecoin presently exhibits more uncertainty in its macro outlook. The Ichimoku Cloud shows signs of bearish presaging. Candlesticks are attempting an uptrend, up above the cloud. But beware! Long-term holders might crash the party with a sell-off, sending Doge tumbling back down.
Ichimoku Cloud is showing sunshine for Dogecoin, but LTH (long-term holder) selling might still darken over this upside gain. This steady selling outflow might quickly destroy any bullish glimmer and reverse the gain, putting Dogecoin back in the shadows, far away from the memory of recent upward surge in prices.
Dogecoin Ichimoku Cloud. Source: TradingView
DOGE Price Needs To Secure Its Gains
Dogecoin has made noise with a price hike of 36% this week, but maybe all bark and no bite. Don’t let the rally fool you, a chilling wind of long-term holders packaging away their portions might send the meme coin reeling back towards the $0.20 mark. Can Doge accomplish this feat, or is it an eternity before it hits another hryvnia?
The $0.234 level acts like a tightrope for Dogecoin with destiny knocking at $0.220. Will the Doge be able to hold the line, or will gravity take it down? Failure to keep altitude would mean that it is a free fall to $0.198, losing all the gains it recently made. Hold onto your chairs; it is going to be a bumpy ride.
This would indicate that the selling pressure is overpowering the bullish momentum, potentially triggering a further decline.
Dogecoin Price Analysis. Source: TradingView
Dogecoin trembles on the brink! Can the $0.220 actually hold this price? Being able to bounce off here will definitely give impetus to a run towards $0.245, where it is currently seen as resistance but would, on successful conversion, act as solid support. The fate of the Doge is now being dangled!
Dogecoin claws its way above $0.245, setting sights on $0.268. Will this breakout bury the bears and unleash the Doge?
Thanks for reading Long-Term DOGE Holders are Selling as Dogecoin Surges 36% – Is the Rally Over?
