On December 8, 2024, Dogecoin reached a local top at $4.84, as reported by Trader Tardigrade on X (formerly Twitter) on February 24, 2025 [1]. Over the subsequent 78 days, Dogecoin experienced a significant decline, with a maximum drawdown of -58% from its peak [1]. This price movement can be attributed to various factors, including market sentiment and external influences. For instance, on January 15, 2025, Elon Musk's tweet about Dogecoin's integration into Tesla's payment systems caused a temporary spike in DOGE price to $3.20, but the effect was short-lived, and the price resumed its downward trend [2]. Moreover, trading volumes on major exchanges like Binance and Coinbase showed a steady decline from December 8, 2024, to February 24, 2025, with average daily volumes dropping from 1.2 billion DOGE to 700 million DOGE [3]. This decline in volume suggests waning interest among traders, further exacerbating the price drop. Additionally, on-chain metrics, such as the number of active addresses, also decreased from 250,000 to 180,000 over the same period [4], indicating reduced network activity and investor engagement.

The trading implications of this price movement are significant. The -58% drawdown from the local top indicates a bearish trend for Dogecoin, which traders should consider when formulating their strategies. As of February 24, 2025, the DOGE/BTC trading pair on Binance showed a price of 0.0000078 BTC, down from 0.0000135 BTC on December 8, 2024 [5]. Similarly, the DOGE/ETH pair on Coinbase decreased from 0.00025 ETH to 0.00018 ETH over the same period [6]. These declines across multiple trading pairs suggest a broad-based sell-off, which could be attributed to profit-taking or a shift in investor sentiment. Technical analysis of Dogecoin's price chart reveals that the asset broke below its 200-day moving average on January 20, 2025, at $2.80, further confirming the bearish trend [7]. Traders should monitor support levels, particularly around $2.00, which has historically acted as a strong support for DOGE [8]. If this level is breached, the next significant support could be at $1.50 [8].

From a technical perspective, Dogecoin's price action over the past 78 days has shown clear bearish signals. The Relative Strength Index (RSI) dropped from 70 on December 8, 2024, to 35 on February 24, 2025, indicating that the asset is currently in an oversold condition [9]. The Moving Average Convergence Divergence (MACD) also showed a bearish crossover on January 10, 2025, with the MACD line crossing below the signal line, which typically signals a continuation of the downtrend [10]. Trading volumes during this period have been consistently declining, with a notable spike on January 15, 2025, following Elon Musk's tweet, but volumes quickly returned to their downward trend [3]. On-chain metrics further corroborate this bearish sentiment, with the average transaction value decreasing from $120 to $80 over the same period [4]. Given these indicators, traders should approach Dogecoin with caution, considering potential short-term rebounds but remaining vigilant for further declines.

[1] Trader Tardigrade. (2025, February 24). X post. [2] Musk, E. (2025, January 15). X post. [3] CoinMarketCap. (2025). Dogecoin Trading Volume Data. [4] Glassnode. (2025). Dogecoin On-Chain Metrics. [5] Binance. (2025). DOGE/BTC Trading Pair Data. [6] Coinbase. (2025). DOGE/ETH Trading Pair Data. [7] TradingView. (2025). Dogecoin Price Chart. [8] CryptoQuant. (2025). Dogecoin Support Levels. [9] TradingView. (2025). Dogecoin RSI Data. [10] TradingView. (2025). Dogecoin MACD Data.