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The Dogecoin price is down double-digits today after an eventful week of upward movement. This has seen a good part of its gains eliminated in the last day, pushing the coin into the red along with the rest of the market.
Why Dogecoin Price Is Down This Week
Dogecoin started out Tuesday on a sour note, dropping more than 10% in the 24-hour period as well. This decline is not attributed to a single thing that happened to DOGE, though, but rather a market-wide decline that began with Bitcoin.
Following the release of the March manufacturing data in the US, the market responded negatively. The report shows that while manufacturing in the country had actually increased for the first time in two years, there wasn’t an increase in employment at these factories. In addition, prices were also higher, thus triggering a negative reaction.
The Bitcoin price declined around 5% off this report and as expected, altcoins suffered even more for this. BTC went below $66,000 and is now finding its footing at this level. However, DOGE’s price fell 10% before finding support above $0.18.
Naturally, Dogecoin is just responding to Bitcoin, which is the market leader. So in this case, an increase in the Bitcoin price would see the DOGE price recover, and a decrease would ensure that the current market crash continues.
DOGE Price Movements This Week
Dogecoin had moved around 10% in the prior day to reach a new three-year high above $0.22. The initial Dogecoin move upward had been triggered by excitement around Elon Musk’s X (formerly Twitter) finally integrating the meme coin as a payment method on the platform.
The social media company had secured additional money transmitter licenses in the United States, sparking speculation of DOGE payments on X coming soon. This, coupled with the expectation that Musk could begin tweeting about DOGE once more, saw its price soar higher.
Also, the announcement that Coinbase, the largest crypto exchange in the United States, would be launching a perpetual trading contract for DOGE contributed to this upward move. This saw the Dogecoin open interest rise to a new record high of $1.77 billion, signaling high interest in the meme coin.
Despite the crash in the market, bullish sentiment remains nonetheless, especially around Dogecoin. Crypto Analyst Ali Martinez predicts that the Dogecoin price will continue to rise, even putting it as high as $12 as the bull market unfolds.
Featured image from U.Today, chart from Tradingview.com
