Dogecoin (DOGE) has experienced a dramatic 50% price decline amid concerning volume metrics, yet one prominent analyst sees potential for a massive rally ahead. Recent market turmoil triggered by Trump’s tariffs has particularly impacted the popular meme coin, though historical patterns suggest a potential reversal.
Volume Crisis Signals Market Weakness
The daily trading volume for DOGE has witnessed a staggering 90% decline since November 2024, dropping from $60 billion to below $3 billion by March 2025. April’s volume remains suppressed below $5 billion, suggesting continued bearish pressure could persist without renewed buying interest.
Liquidation Wave Hits Long Traders
The recent downturn has triggered over $4 million in liquidations, with long positions accounting for 80% of the losses. This capitulation event coincides with broader crypto market weakness that has erased $160 billion in value.
Bullish Case: Historical Pattern Suggests Major Rally
Despite current bearish conditions, crypto analyst Trader Tardigrade has identified striking similarities to DOGE’s 2016 and 2021 cycles. The analyst’s technical analysis points to a potential 1,500% surge, targeting $2.1 based on historical price patterns and market cycles.
FAQ Section
Why is Dogecoin volume dropping?
The volume decline reflects reduced trading activity amid broader market uncertainty and the impact of Trump’s tariff policies on risk assets.
What could trigger a DOGE price recovery?
A combination of increased trading volume, positive market sentiment, and potential catalyst events could spark a recovery.
Is now a good time to buy Dogecoin?
While historical patterns suggest potential upside, current market conditions and low volume indicate high risk. Investors should conduct thorough research and consider their risk tolerance.