The problem is that it shot up 1000% in about a day.
This is really just a correction in price. Everything went too fast - Dogecoin certainly isn't old or dead - for the past two days the Dogecoin subreddit has been the fastest growing nondefault subreddit. Also, check it out on Google trends:
http://www.google.com/trends/explore#q=dogecoinIt's going to start growing again, mark my words.