Dogecoin has experienced a moderate increase in its price lately, with a 36% surge this week. Yet, there are potential challenges ahead for this rally as long-term holders are starting to sell their holdings in substantial amounts.

The rise in selling by long-term holders is indicated by the Age Consumed metric for Dogecoin, showing a notable increase in the pace of selling not seen since June 2023. This surge in selling suggests a change in investor behavior as long-term holders are crucial for the cryptocurrency's stability.

The selling pressure from long-term holders could introduce volatility that might hinder Dogecoin from sustaining its recent gains. While there are some positive signals in the market, such as the potential uptrend indicated by the Ichimoku Cloud indicator, the sustained selling by long-term holders could counter these signals.

Dogecoin's price surge of 36% this week is impressive, but it remains at risk of dropping below $0.200 due to ongoing selling pressure from long-term holders. As Dogecoin approaches the critical support level of $0.220, failure to hold this level could lead to a decline to $0.198, erasing much of the recent gains.

If Dogecoin manages to maintain $0.220 as support and bounces back, it may aim to establish $0.245 as a support level. Breaking above $0.245 could set the stage for a further rise to $0.268, potentially reversing the bearish trend and keeping Dogecoin on an upward path.