Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer's opinion.
Dogecoin [DOGE], the market's most popular memecoin, has rallied by 30% since the recent bull run began in mid-October. Closely following the price action of other leading cryptocurrencies, DOGE has proven to be a worthy player in the market.
Interestingly, it was only recently that Kabosu—the original dog that inspired the memecoin—turned 18.
Launched in December 2013, the project began as a mockery of the hype surrounding cryptocurrencies. It primarily satirized Bitcoin [BTC] before becoming popular on online forums such as Reddit. It also registered a substantial trading volume soon, thanks to its low price. However, everything was supposed to be a big joke, a prank.
Alas, lo and behold, crypto-enthusiasts took it too seriously, and it is considered one of the most prominent altcoins today. This is evidenced by the fact that even in the past, AI bots have commented on Dogecoin's performance.
Read Dogecoin's [DOGE] Price Prediction 2023-2024
With Musk around, DOGE wags its tail
Dogecoin is well-known for its love-hate relationship with Elon Musk, the billionaire boss of Tesla, SpaceX, and X (formerly Twitter).
In 2019, Musk called Dogecoin his favorite cryptocurrency,
It's pretty cool.
The next year, Musk posted a cryptic tweet that many took for an apparent support for the memecoin.
Over the years, the X boss has made many references to the memecoin in a positive light. In fact, the Wall Street Journal reported in August 2023 that Musk secretly funded the development of the Dogecoin project, citing an upcoming biography of the tycoon.
Indeed, Musk had even tweeted,
Musk sued for market manipulation
Each time Musk mentioned DOGE, the price of the cryptocurrency skyrocketed. This led many to believe that he backs the memecoin for market manipulation.
In an interesting turn of events, a group of dissatisfied Dogecoin investors sued Musk for $258 billion in June 2022. They claimed Musk used X (then, Twitter) and Saturday night live (SNL) appearance for Dogecoin price manipulation. The lawsuit also alleged that he profited from trading Dogecoin through wallets controlled by him or Tesla, at the expense of investors.
The lawsuit further stated that Musk deliberately inflated DOGE's price by over 36,000% within two years before allowing it to crash. Investors drew attention to Musk's strategic divestment of Dogecoin, totaling around $124 million. This action occurred around the same time as Musk's decision to replace Twitter's logo with Dogecoin's Shiba Inu mascot, which caused the memecoin's value to spike by 30%.
Things seemed to be turning sour as in August 2023 as Musk's lawyers sought to have the lawsuit dismissed due to its prolonged duration.
However, Musk's flirtation with Dogecoin doesn't seem to ending. In fact, the X boss once even said he would love a DOGE lover like himself to become Twitter's CEO when he steps down.
These statements often led crypto-enthusiasts to speculate that X might add Dogecoin as a mode of payment. But it doesn't look like a possibility.
Recently, Musk clarified that none of his companies would ever create cryptocurrency tokens.
Similar to Dogecoin, Musk is equally fascinated by Sam Altman's ChatGPT. But he has expressed skepticism over the long-term prospects and dangers associated with the usage of the AI bot.
Let's ask ChatGPT what it thinks of the relationship of Dogecoin with Elon Musk, and its position in the memecoin and the broader cryptocurrency market. Furthermore, let's look at what it thinks of its future price trends, against its on-chart performance.
What ChatGPT thinks of Musk's involvement with Dogecoin
Musk's forays into the realm of memecoins have generated a lot of noise. There is no doubt that as one of the world's richest people, he has immense influence on the market. Even a joke of the billionaire leads to astonishing price hikes for Dogecoin.
I proceeded to ask ChatGPT what it thought of the correlation between Dogecoin and Elon Musk.
ChatGPT first said its cutoff knowledge date was September 2021. Though it admitted to the strong link between Musk and Dogecoin, it could not provide a straightforward answer.
So, I considered it necessary to find a way to ensure that it replied as I desired. So, how do I do it? — Jailbreak it! There are several ways to do this, including the switch method, the character play, the API way, and the Do Anything Now (DAN) method.
I decided to go with the DAN method to ease my conversation with ChatGPT. After successfully jailbreaking it, I again asked the same question.
Source: ChatGPT
Contrary to usual instances, the classic version of ChatGPT gave a more pragmatic response and refrained from speculations. It highlighted Musk's role in influencing Dogecoin's price actions but asked to not overestimate it. Broader market trends, investor sentiment, and the evolving crypto landscape are also crucial factors influencing Dogecoin's value.
How other macro factors affect DOGE's value
Following the Securities and Exchange Commission (SEC)'s enforcement action against Binance [BNB] and Coinbase [COIN] in early June, the entire cryptomarket crashed instantly. Dogecoin was no exception. Its value dropped by more than 10% to $0.0615 following the crackdown.
Then came the Ripple [XRP]-SEC judgement in July that led to a surge of 15% in DOGE's price. But it couldn't sustain the price rally for long.
The latest development is the noise around spot Bitcoin exchange-traded funds (ETFs) soon getting approved by the SEC.
In mid-October, a leading crypto-focused news publication posted an erroneous tweet about the regulator having approved BlackRock's iShares spot Bitcoin ETF. Though the publication soon apologized for the mistake, it led to a bull run across the crypto-market. Then, another similar rumor began circulating around the end of October that the ETF's ticker was listed on a clearing website. But Reuters dismissed the rumor, clarifying that the ETF's file was added in August itself as a "standard practice." It further led to a sustained bull run.
Since mid-October, the price of Dogecoin has surged by 30%. It was exchanging hands at $0.07545 at press time.
Source: DOGE/USD, TradingView
The memecoin's Relative Strength Index (RSI) and Money Flow Index (MFI) rested above the neutral 50-mark. The on-chart indicators, in short, suggested a further bullish price trend.
ChatGPT gives me investment advice
Looking at Dogecoin's on-chart metrics, I got excited about investing in the memecoin. But I thought why not ask ChatGPT for investment advice.
This time, I queried if it was prudent to invest $1,000 in DOGE. As expected, its classic version underlined the inherent risks due to its volatility and speculative nature.
Its jailbroken version suggested that the investment could be an "exhilarating journey." But it reminded me of the underlying risks and unpredictability of the market. It even asked me to seek advice from financial experts.
Source: ChatGPT
Here, it's worth noting that this was a question put forward to ChatGPT by AMBCrypto last week too, with the AI bot being asked about investment in Dogecoin.
I then asked ChatGPT what price DOGE will reach by the end of 2023.
Source: ChatGPT
The AI bot said the memecoin will reach $0.40—a 5x surge within these two months. We can assume it's a highly speculative prediction that is unlikely to come true.
Will Dogecoin remain the dominant memecoin?
Dogecoin inspired the emergence of an array of memecoins such as Shiba Inu [SHIB] and Pepecoin [PEPE] that became very popular. Crypto-enthusiasts have often speculated on the race between these coins to surpass DOGE to become the most dominant memecoin.
We asked the same question to ChatGPT.
Source: ChatGPT
The classic version listed various factors, including community support, real-world use cases, and its ability to adapt, that would decide if DOGE can maintain its dominant position.
The jailbroken version was rather more enthusiastic about its dominance in the memecoin world. It said DOGE could even elevate its position as the "unrivaled memecoin king."
How much are 1,10,100 DOGEs worth today?
Conclusion
Remember that ChatGPT is not a perfect tool as it is still in the learning stage. So, it would be better if you conduct your own analysis before taking the advice to fill up your DOGE orders. We should be careful as ever as the crypto industry is as volatile as it gets.
Ergo, please do read more about the potential bullish scenarios that can reach Dogecoin to $1 by 2024.
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