Dogecoin’s Price Dive: What’s Behind the Crash?

Market-Wide Decline

Dogecoin’s price has taken a hit today, losing double digits after a week of gains. This downturn is part of a broader market decline triggered by the release of manufacturing data in the US.

The data showed that while manufacturing activity increased, there was no increase in employment or prices rose, leading to a negative market reaction. Bitcoin dropped around 5%, dragging down altcoins like Dogecoin.

Dogecoin’s Dependence on Bitcoin

Dogecoin’s price is heavily influenced by Bitcoin’s movements. As Bitcoin’s price declined, Dogecoin followed suit, falling 10% before finding support above $0.18.

Prior Gains and Speculation

Before the crash, Dogecoin had rallied around 10% to a three-year high above $0.22. This surge was fueled by excitement over Elon Musk’s Twitter integrating Dogecoin as a payment method.

The announcement of Coinbase launching a perpetual trading contract for Dogecoin also contributed to the upward momentum.

Bullish Sentiment Remains

Despite the market crash, bullish sentiment around Dogecoin remains. Analyst Ali Martinez predicts that the price will continue to rise, potentially reaching $12 as the bull market continues.