TLDR

Dogecoin has experienced a 90% drop in trading volume since November 2024
Price has declined over 50% in under six months while Bitcoin fell only 25%
Current trading around $0.1572 with key support at $0.1660
MACD indicator shows potential signs of weakening bearish pressure
Some analysts predict a massive rally similar to 2016 and 2021 cycles

The popular meme cryptocurrency Dogecoin (DOGE) has seen dramatic changes in both trading activity and valuation since late 2024. This analysis examines recent price movements, technical indicators, and expert opinions on what might lie ahead for the canine-themed digital asset.

Trading volume for Dogecoin has fallen precipitously from its November 2024 peak. Daily volume exceeded $60 billion during that period but plunged below $3 billion by March 2025’s end, representing a staggering 90% decrease in market activity.

April 2025 data from Coinglass shows only slight improvement, with daily volume consistently remaining under the $5 billion threshold. This ongoing volume depression correlates strongly with DOGE’s price struggles.

The cryptocurrency is currently changing hands at approximately $0.1572, following a 2.9% decline on recent short-term charts. This represents part of a larger downtrend that has erased more than half of DOGE’s value since its November peak.

Dogecoin (DOGE) Price

Market Factors and Liquidations

The broader cryptocurrency market has felt pressure from economic factors, notably including policies from the Trump administration. Recent tariffs have triggered substantial market volatility, with some analysts comparing the resulting stock market decline to the crash of 2010.

This bearish sentiment has spread throughout crypto markets, with Bitcoin pulling back toward the $80,000 level. As typically happens during downturns, altcoins like Dogecoin have experienced more severe corrections than their larger counterparts.

Recent trading data highlights the pain felt by optimistic investors. A single day saw over $4 million in liquidations, with long positions accounting for more than 80% of these forced exits.

Technical Support and Resistance

Traders are closely watching several key price levels that could determine DOGE’s next move. The immediate support sits at $0.1660, which has repeatedly served as a foundation during recent consolidation phases. Should this level fail, further decline to $0.1640 seems likely.

Looking upward, DOGE faces resistance between $0.1720 and $0.1740. The cryptocurrency has tested this zone multiple times without successfully establishing a foothold above it, creating a technical pattern known as a double top.

The MACD indicator offers a potential bright spot for DOGE holders. After an extended negative phase, the histogram has begun shifting toward green territory, suggesting the bearish momentum may be waning. The convergence of MACD and signal lines hints at a possible bullish crossover in the near future.

When examined on higher timeframes, Dogecoin maintains a generally positive structure with the 200 EMA positioned below current price levels. The present retracement appears more consistent with a healthy correction than a complete reversal of trend.

Contrarian Bullish Views

Despite prevailing negative market sentiment, some analysts remain decidedly optimistic about Dogecoin’s prospects. Crypto analyst Trader Tardigrade has identified pattern similarities between current market conditions and those preceding major rallies in 2016 and 2021.

According to this analysis, historical repetition could potentially drive DOGE prices upward by more than 1,500%, potentially reaching the $2.1 level. “Dogecoin is about to Surge again,” the analyst declared in social media commentary.

Dogecoin is about to Surge again 🔥 pic.twitter.com/QZ35KbNrcl

— Trader Tardigrade (@TATrader_Alan) April 6, 2025

Several fundamental factors continue supporting Dogecoin’s long-term case. Its dedicated community, cultural relevance as the original meme coin, and potential payment applications all contribute to its staying power. Elon Musk’s ongoing vocal support and rumors regarding integration with X (formerly Twitter) maintain speculative interest.

Though lacking sophisticated smart contract capabilities, Dogecoin offers advantages through relatively low transaction fees and network simplicity. These characteristics position it favorably for small-value transactions, potentially driving real-world utility.

Whale Activity and Near-Term Outlook

Recent on-chain data from Q1 2025 shows moderate growth in Dogecoin network activity. Notably, large holders (“whales”) appear to be accumulating during price dips, potentially signaling longer-term confidence despite current market weakness.

For short-term traders, Dogecoin currently presents a mixed picture with neutral-to-bullish technical indicators. Market participants should monitor for a daily close above $0.168, which would suggest upward momentum, or watch for a breakdown below $0.155, which could trigger additional selling pressure.

The post Dogecoin (DOGE) Price: Long Traders Face $4 Million Liquidation Day as Bears Take Control appeared first on CoinCentral.

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Filed under: News - @ April 7, 2025 9:02 am