What caused the price of Dogecoin to plummet today?
Dogecoin price fell by double digits today after an eventful week of gains. This resulted in most of its last day’s gains being wiped out, causing the coin to slip into the red along with the rest of the market. Why Dogecoin Price Falls This Week Dogecoin had a weak opening on Tuesday, also falling more than 10% in 24 hours. However, this drop was not caused by anything happening at DOGE, but rather by the overall market drop that started with Bitcoin
After the release of U.S. manufacturing data for March, the market reacted negatively. The report showed that while the country's manufacturing sector actually grew for the first time in two years, employment in those factories did not increase. 🚀qun＋v:tq58956 👈 Additionally, the price also moved higher, triggering a negative reaction. Bitcoin prices are down about 5% from this report, and as expected, altcoins have suffered more as a result. BTC fell below $66,000 and is currently establishing a foothold at this level. However, DOGE’s price declined by 10% before finding support above $0.18.
Of course, Dogecoin is just a response to market leader Bitcoin. Therefore, in this scenario, a rise in Bitcoin prices will allow DOGE prices to recover, while a fall in Bitcoin prices will ensure that the current market crash continues.
DOGE Price Action This Week: Dogecoin gained about 10% the previous day, reaching a new three-year high above $0.22. Dogecoin’s initial surge was sparked by excitement that Elon Musk’s X (formerly Twitter) would finally integrate the memecoin as a payment method on the platform.
The social media company has secured an additional money transmission license in the United States, fueling speculation that X is about to launch DOGE payments. This, coupled with the expectation that Musk might tweet about DOGE again, caused its price to surge.
In addition, the rise was also fueled by Coinbase, the largest U.S. cryptocurrency exchange, announcing that it would launch a DOGE perpetual trading contract. This pushed Dogecoin’s open interest to a new record high of $1.77 billion, indicating high interest in the meme coin.
Despite the market’s plunge, bullish sentiment remains, especially around Dogecoin.Cryptocurrency analyst Ali Martinez predicts that the price of Dogecoin will continue to rise and even reach $12 as the bull market unfolds.
