Dogecoin has witnessed a significant drop in trading volume since reaching two-year highs back in November 2024. This decline in volume has been mirrored by a substantial decrease in the price of DOGE, with over 50% of its value evaporating in less than six months. Given the muted trading activity, there is a palpable concern that the price may continue to decline, potentially leading investors into even more considerable losses.
Dogecoin Daily Volume Remains Below $5 Billion
Over the past four months, Dogecoin’s daily trading volume has seen a steady downturn. The volume soared above $60 billion on November 13, 2024, only to plummet below $3 billion by the end of March 2025, representing a staggering 90% decline. Recent data from Coinglass indicates a slight rebound in trading volume; however, it still languishes below $5 billion for the entirety of April 2025 so far. This prolonged volume drop corresponds closely with the price decline, suggesting that without a notable uptick in trading activity, Dogecoin may continue to face challenges.
The downturn in price has predominantly impacted long traders, as bearish sentiment gains traction in the crypto market. In recent trading sessions, over $4 million in liquidations were noted, with more than 80% stemming from long positions as bearish pressures intensified.
This market malaise has been largely driven by a series of tariffs introduced by former President Donald Trump, which have led to the stock market experiencing its worst crash since 2010. Consequently, a bear market environment has emerged, with Bitcoin prices nearing $80,000. Given the volatile nature of meme coins, assets like Dogecoin have suffered disproportionately, with losses exceeding 50% compared to Bitcoin’s approximate 25% decline.
Not Everyone Is Bearish
Despite the prevailing bearish backdrop within the crypto sphere, there remains a contingent of traders who are optimistic about Dogecoin’s potential. Among these is crypto analyst Trader Tardigrade, who has expressed sustained bullishness regarding Dogecoin’s future.
In a recent post on X (formerly Twitter), the analyst highlighted parallels to the 2016 and 2021 cycles, where Dogecoin experienced significant price surges. Based on his technical analysis, certain patterns resemble previous formations that preceded notable price increases.
If these historical patterns indeed hold, Dogecoin could be poised for a remarkable rebound, with analysts predicting that prices could surge as much as 1,500%, targeting levels as high as $2.10. As stated by the analyst, “Dogecoin is about to Surge again.”
Chart from TradingView.com
