We study the velocity autocorrelation function (VACF) of a driven granular fluid in the stationary state in 3 dimensions. As the critical volume fraction of the glass transition in the corresponding elastic system is approached, we observe pronounced cage effects in the VACF as well as a strong decrease of the diffusion constant. At moderate densities the VACF is shown to decay algebraically in time (t^{-3/2}) like in a molecular fluid, as long as the driving conserves momentum locally.