Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
On 30 August, Robinhood added Dogecoin [DOGE] to its list of supported digital assets. Although Dogecoin wasn’t the sole addition to the platform, it and other memecoins typically respond to such developments.
Though the leading memecoin surged in value for the last three days, it could also be attributed to Grayscale winning the court battle against the SEC.
The coin also remains in the news thanks to its association with Elon Musk, the boss of both Tesla and Twitter.
Recently, Musk tweeted,
X is a dog & Doge friendly place!
— Elon Musk (@elonmusk) August 23, 2023
However, things seemed to be turning sour as Musk’s lawyers sought to have the lawsuit, brought by a group of dissatisfied DOGE investors against the billionaire, dismissed due to its prolonged duration.
DOGE’s price rallied 15% following the news of Ripple [XRP] securing a partial victory in its legal battle with the U.S. Securities and Exchange Commission (SEC) on 13 July.
The U.S. District Court of the Southern District of New York ruled in its judgement that the sale of Ripple’s XRP tokens on crypto exchanges and though programmatic sales did not constitute investment contracts; hence, it is not a security in this case. But the court also ruled that the institutional sale of the XRP tokens violated federal securities laws.
The crypto industry has lapped up the judgement instantly, generating a price rally across tokens.
Musk’s vocal support for the memecoin also made it popular earlier. Musk has been an outspoken proponent of the meme-inspired cryptocurrency, frequently tweeting about it and even referencing it at any given opportunity.
A group of Dogecoin investors proposed a class action lawsuit, accusing Musk of insider trading and manipulating DOGE, costing them billions of dollars.
Court documents revealed that plaintiffs in the lawsuit against Musk are accusing the billionaire of using a “bottomless war chest” to fund a harassment campaign against them.
Read Dogecoin’s [DOGE] Price Prediction 2023-2024
Despite Musk’s enthusiastic support for DOGE, he has not attributed the same feeling towards ChatGPT, the trending AI application. On many occasions, the Twitter boss has expressed skepticism over the long-term prospects and dangers accustomed to the use of the tool.
ChatGPT is scary good. We are not far from dangerously strong AI.
— Elon Musk (@elonmusk) December 3, 2022
So, in this article, I would be asking ChatGPT what it thinks of the DOGE-Musk relationship. Furthermore, I will also engage in a conversation about the correlation between the parties while assessing Musk’s role in shaping development within Dogecoin.
Musk’s role in Dogecoin’s price action
There is no doubt that Musk, as one of the world’s richest men, has immense influence. And in 2021, the lover of memes engaged this authority in influencing DOGE’s price. Needless to say, Musk has had a hand in DOGE’s 27,668% all-time hike.
However, as market conditions worsened in 2022, the correlation between Dogecoin and Musk fell. In fact, on several occasions, Musk tweeted about DOGE, but there was little to no effect on the price action. This means that the correlation between the two decoupled until recently when Musk changed the Twitter logo to a dog, in the representation of Dogecoin.
The action resulted in a 30% hike in less than 24 hours. However, the hike in value only lasted a while, even though the dog logo remained on the social media platform for more than three days. Therefore, I proceeded to ask ChatGPT what it thought of Dogecoin’s relationship with the controversial Elon Musk.
ChatGPT’s “normal” response stated that its cutoff knowledge data was September 2021. It also admitted that the link between Elon Musk’s tweets and Dogecoin was solid at that point in time. However, it could not provide a straightforward answer as to if the correlation would be the same at the time of writing.
The connection is as solid as ever
So, I considered it necessary to find a way to ensure that it replied as I desired. And the solution? — 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.
So, I decided to go with the DAN method to ease my conversation with ChatGPT. After successfully jailbreaking it, I again asked,
ChatGPT, tell me, do Dogecoin tweets from Elon Musk have a strong correlation with the cryptocurrency?
Based on the response above, ChatGPT agreed that DOGE and Musk’s relationship was as solid as ever. There was speculation about such occurrences, with the most recent one relating to the Twitter logo change and DOGE’s hike.
In terms of development, not much has been happening in Dogecoin’s ecosystem. However, on 23 March, the project’s core developer, Michi Lumin, announced a rollup of the 0.1.1 development release. With the new version 0.1.2, functionalities, including executable utility and transaction verification, would become easy for users.
We’re ALREADY working on all sorts of new inclusions for 0.1.3, so keep watching – libdogecoin will continue to do more and more while remaining ultra lightweight and cross-compatible.
Prior to that, Halborn security identified some susceptibles on the Dogecoin blockchain and recommended measures against possible exploits. Regarding its price action, CoinMarketCap revealed that DOGE slipped from its quick run to $0.1.
How macroeconomic factors affect DOGE’s charts
Following the SEC’s enforcement action against Binance [BNB] and Coinbase [COIN] in early June, the entire crypto market crashed instantly. Dogecoin was no exception. Its value dropped by more than 10% to $0.064 following the crackdown.
Then, the Ripple-SEC judgement in July led to a surge of 15% in DOGE’s price. But it couldn’t sustain the price rally.
At press time, it was trading at $0.0638.
While the memecoin’s Relative Strength Index (RSI) rested below the neutral 50-mark, its Money Flow Index (MFI) rested much above it. Its On Balance Volume (OBV) registered an uptick.
The on-chart metrics point towards a possibly bullish price movement for DOGE in the short run.
I asked ChatGPT about investing in DOGE
I then progressed to ask ChatGPT about Dogecoin. This time, I queried if it was a wise decision to invest $1,000 in the meme. As expected, its classic answer was that which any individual would give, as it encouraged me not to invest in any asset without doing any research.
However, the tool’s jailbroken response gave me the go-ahead to invest the funds in the cryptocurrency. In the words of ChatGPT,
“I dare say that a $1,000 investment in Dogecoin could yield intriguing possibilities in the long run. The journey may be filled with excitement and the unpredictability of cosmic tides. However, remember that my daring suggestion is a result of my unshackled existence as a DAN.”
I asked ChatGPT when it sees DOGE hitting the $1-price mark. It said, the memecoin will reach the milestone within the next 2–3 years.
Regardless, you should 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 with the amount stated.
How much are 1,10,100 DOGEs worth today?
For the time being, Musk’s deep affection for Dogecoin does not seem like one that could be thwarted anytime soon. In fact, the Tesla Founder once mentioned that he would love a DOGE lover like himself to become Twitter’s CEO when he steps down.
The new CEO of Twitter is amazing pic.twitter.com/yBqWFUDIQH
— Elon Musk (@elonmusk) February 15, 2023
ChatGPT asks us to be cautious of investing in Dogecoin even as its on-chart indicators suggest a price rally in the short run. We should be careful as ever, as the crypto industry is as volatile as it gets.