Dogecoin volume drops below $5B as analysts predict rebound

Dogecoin (CRYPTO:DOGE) has experienced a significant decline in trading volume and price since reaching its two-year peak in November 2024.

Daily trading volume, which exceeded $60 billion in November, has plummeted by over 90%, dropping below $3 billion by March 2025.

Recent data shows that Dogecoin's average daily volume for April remains under $5 billion, coinciding with a price drop of more than 50% over the past six months.

The broader cryptocurrency market downturn, driven by economic factors such as Donald Trump’s tariffs and a stock market crash, has amplified bearish trends.

Bitcoin (CRYPTO:BTC) has fallen toward $80,000, with altcoins like Dogecoin suffering steeper losses due to their high volatility.

Long traders have been hit hardest, with over $4 million in liquidations on Sunday alone, as bearish pressure continues to dominate.

Analysts suggest that without a significant increase in trading volume, Dogecoin's price may face further declines.

Despite the current bearish sentiment, some analysts remain optimistic about Dogecoin's future.

Crypto analyst Trader Tardigrade highlighted similarities between the current market cycle and previous ones in 2016 and 2021, suggesting that Dogecoin could see a dramatic surge.

According to Tardigrade’s analysis, the meme coin could potentially rise by over 1,500%, targeting a price of $2.1 if historical patterns repeat.

The mixed outlook reflects the unpredictable nature of cryptocurrency markets.

While some foresee continued struggles for Dogecoin amid low trading volumes and market-wide bearish trends, others point to historical cycles as an indication of possible recovery and growth.

At the time of reporting, the Dogecoin (DOGE) price was $0.1327.