So, yes, it's definitely possible, but if you actually want something similar to a DDR experience, it's extremely hard and requires expert-level scripting and eventing. I've made a DDR minigame on Ace and it took several weeks to develop something where the arrows came in a preset pattern, stayed relatively in time with the song's beat, and didn't create enormous lag. To be very blunt, RPG Maker is not a good platform for something that requires this kind of precise audiovisual timing.
However, if all you need to do is to have the player hit arrows when they line up with the "hit bar" at the top, it's not as bad. In a very basic sense, what you want to do is make each arrow into an Event, and use a single parallel process event to control when each arrow starts moving toward that hit bar. Then, have a second parallel process event keep looping to check whether the player hits an arrow key on their keyboard, and if so, check the Y-position of each arrow of that type (such as Down Arrows). If one of those arrows is at the Y-position of the hitbar, award a Perfect; if it's one away, award a Good, otherwise award a Boo.
As far as I know there isn't any plugin that will significantly help you make a DDR minigame by yourself. However, you there is Moghunter's Theatrhythm plugin which provides something sort of similar for your battle system.