Dogecoin Loses 50% Value as Trading Volume Drops 90%

Dogecoin, a popular meme cryptocurrency, has experienced a significant downturn in recent months. Since reaching its two-year highs in late 2024, the memecoin’s trading volume has plummeted, leading to a substantial drop in its price. Over the last six months, DOGE has lost more than 50% of its value, leaving investors uncertain about its future.

Over the past four months, the trading volume of DOGE has seen a steady decline. The daily trading volume peaked at $60 billion on November 13, 2024, but by the end of March 2025, it had dropped to below $3 billion. This 90% decrease in trading volume has also validated a decline in the DOGE price, with long-term holders facing substantial losses as bears take control. Recent economic developments, including President Donald Trump’s tariffs, have exacerbated the situation.

Despite the bearish market conditions, sentiments surrounding Dogecoin remain bullish. One notable advocate is the famous crypto analyst Trader Tardigrade, who has pointed out similarities between the current market situation and previous cycles in 2016 and 2021. According to the analyst, there have been similar formations pointing to a possible surge for DOGE. If this plays out as expected, DOGE could see a 1500% surge in price, with the target set at $2.1.

DOGE commenced trading at $0.1696, initially showing a slight uptrend. However, the uptrend soon lost momentum, and the trend reversed by 1:30 UTC. A death cross formed on the MACD, leading DOGE into a slow but steady decline. The $0.1638 acted as a support briefly, but by 13:00 UTC, DOGE abandoned it on its way down. The DOGE price finally found some respite at $0.1597. A slight reversal was seen as the MACD featured a golden cross, but the reversal did not last. DOGE again started declining with a golden cross, despite just recovering from an oversold RSI. This time DOGE fell all the way down to $0.146, finding some support there. A range formed, with $0.152 as the resistance. The DOGE price tried to break out and up from the resistance, but failed to do so. This failure led DOGE to let go of the support and tread further down. DOGE finally found support at $0.130. The RSI at this point reported heavily oversold levels.

While the entire crypto market has crashed, it is worth noting that DOGE’s decline has been slow and not sudden. DOGE price is showing some resilience to the overall market trend. To add to that, the bearish pressure has led the price down despite several instances of an overbought RSI. This means that a correction is on the cards soon and will help the DOGE price recover to some extent. As of now, DOGE looks poised to find a new resistance level and fall back to the support if it fails to break across.

The decline in DOGE volume and price can be attributed to several factors. Firstly, the overall market sentiment has been bearish, with investors adopting a risk-averse strategy in response to the uncertain economic climate. Secondly, the meme-based nature of DOGE, which initially attracted a large number of retail investors, has lost some of its appeal as the market matures. The lack of intrinsic value and the reliance on social media hype have made DOGE vulnerable to market fluctuations.

Moreover, the regulatory environment for cryptocurrencies remains uncertain, with various governments around the world taking different stances on digital assets. This regulatory ambiguity has contributed to the volatility in the cryptocurrency market, with investors wary of potential regulatory crackdowns. The lack of clear guidelines and regulations has made it difficult for cryptocurrencies like DOGE to gain mainstream acceptance and stability.

The future of DOGE remains uncertain, with analysts divided on its prospects. Some believe that the recent decline is a temporary setback and that DOGE has the potential to recover, given its strong community support and the growing interest in meme-based cryptocurrencies. Others, however, are more pessimistic, citing the lack of intrinsic value and the reliance on social media hype as significant drawbacks.