Dogecoin's Price Drops 50% as Trading Volume Falls 90%
1min read Dogecoin, a once-popular meme coin, has faced significant challenges over the past few months, with its price plummeting by over 50% since hitting a 2-year high in November 2024. This decline has been accompanied by a substantial drop in trading activity, with daily volumes falling from a peak of over $60 billion in mid-November 2024 to below $3 billion by the end of March 2025. This more than 90% decrease in volume has raised concerns among investors, as it indicates waning interest from both retail and institutional traders.
The sharp decline in trading volume has coincided with a bearish trend in Dogecoin's price, exacerbating the downward pressure on the cryptocurrency. The liquidity crunch has led to increased price volatility, leaving long traders particularly vulnerable. On a recent Sunday, over $4 million in DOGE long positions were liquidated, with more than 80% of these positions belonging to long traders.
Despite the current market conditions, technical analysts have begun to identify signs of a potential recovery for Dogecoin. Technical indicators on Dogecoin’s chart have shown patterns similar to those observed during past bull cycles, suggesting a possible reversal in the cryptocurrency's fortunes. Crypto analyst Trader Tardigrade recently pointed out that these patterns resemble those from 2016 and 2021, both of which preceded major rallies. According to Tardigrade, if history repeats itself, DOGE could be on the verge of a massive run-up, potentially gaining as much as 1,500% and reaching $2.1. While this prediction may seem overly optimistic given the current crypto dump, it aligns with the sentiment of those tracking long-term technical indicators and macro cycle patterns.
Despite the bearish dominance in recent months, there is still a strong bullish sentiment within the Dogecoin community. Many investors view DOGE as a long-term play, particularly with increasing speculation around broader crypto adoption and potential integrations. If Dogecoin can maintain its bullish momentum and see a return in trading volume, the potential for a significant price surge remains strong. Historically, Dogecoin has recovered from comparable lows with support levels, despite recent declines in price.
The upcoming months could be pivotal for Dogecoin. A recovery in trading volume might signal renewed interest and capital inflows. If this aligns with favorable macro conditions and cycle alignment, the market may once again witness a Dogecoin price surge. Strategic traders are closely monitoring the charts, waiting for the next breakout to confirm the rising Dogecoin bullish trend amid the ongoing crypto dump.
Ask Aime: What is the future trajectory for Dogecoin after its recent price decline and reduction in trading volume?
