The Dogecoin (DOGE) price experienced a significant double-digit decrease today following a week of notable upward movement. This decline resulted in the elimination of a substantial portion of the gains made over the past week, causing the coin to enter negative territory alongside the broader market.

Factors Influencing Dogecoin Price Decline This Week

On Tuesday, Dogecoin faced a notable decrease of over 10% within a 24-hour period. The decline in DOGE price was not solely due to a specific event related to the coin itself, but rather part of a broader market downturn that commenced with Bitcoin.

The negative market response followed the release of manufacturing data for March in the US. Despite an increase in manufacturing activity within the country after a two-year period, the lack of growth in employment at these factories and higher prices led to a pessimistic reaction.

As a result, Bitcoin's price dropped by approximately 5% in response to the report, further impacting altcoins. Bitcoin dipped below $66,000, while DOGE's price fell by 10% before stabilizing above $0.18.

Dogecoin's price movement closely mirrors that of Bitcoin, the dominant player in the market. Therefore, any fluctuations in Bitcoin's price are likely to influence DOGE's price in a similar manner.

Analysis of Dogecoin Price Movements This Week

After a significant surge, Dogecoin reached a new three-year high above $0.22, driven by various factors. Elon Musk's X (formerly Twitter) integrating Dogecoin as a payment method generated excitement, alongside the anticipation of Musk resuming tweets about DOGE.

Furthermore, Coinbase's announcement regarding the launch of a perpetual trading contract for DOGE on its platform contributed to the upward momentum. This move resulted in a new record high open interest of $1.77 billion for Dogecoin, indicating significant interest in the meme coin.

Despite the recent market crash, a bullish sentiment persists, especially concerning Dogecoin. Crypto Analyst Ali Martinez even predicts a potential rise in Dogecoin price, estimating a high of $12 as the bull market progresses.