Why is the Dogecoin price falling today?

The Dogecoin price is down double digits today after an eventful week of upward movement. This eliminated much of the last day’s gains, depressing the price coin together with the rest of the market in the red.

Why the Dogecoin Price is Falling This Week

Dogecoin started on a sour note on Tuesday, also falling more than 10% in a 24-hour period. This decline is not attributed to anything that happened DOGE, but rather a market-wide decline that started with Bitcoin.

Following the release of March US production data, the market reacted negatively. The report shows that although production in the country actually increased for the first time in two years, there was no increase in employment in these factories. Moreover, prices were also higher, which provoked a negative reaction.

The Bitcoin price fell about 5% from this report and as expected, altcoins suffered even more. BTC fell below $66,000 and is now finding its base at this level. However, DOGE’s price fell 10% before finding support above $0.18.

Of course, Dogecoin is simply responding to Bitcoin, the market leader. So in this case, an increase in the Bitcoin price would increase the DOGE price recovery, and a decline would ensure the current market crash continues.

DOGE price movements this week

Dogecoin had risen about 10% the previous day to hit a new three-year high above $0.22. The initial Dogecoin moves up was caused by the excitement surrounding Elon Musk’s X (formerly Twitter) which would finally integrate the meme coin as a payment method on the platform.

The social media company had obtained additional money transmission licenses in the United States, sparking speculation DOGE payments on X are coming soon. This, coupled with the expectation that Musk might start tweeting DOGE saw the price rise again.

Also the announcement that Coinbase, the largest crypto exchange in the United States, would launch a perpetual trading contract for DOGE contributed to this upward movement. This caused Dogecoin’s open interest to rise to a new record high of $1.77 billion, indicating high interest in the meme coin.

Despite the market crash, sentiment remains bullish, especially around Dogecoin. Crypto analyst Ali Martinez predicts that the Dogecoin price will continue to riseand could even reach $12 as the bull market unfolds.

Dogecoin price chart from Tradingview.com

DOGE price drops 10% to $0.18 | Source: DOGEUSDT on Tradingview.com

Featured image from U.Today, chart from Tradingview.com

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