Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
As you may already know, Dogecoin [DOGE] has become somewhat of a cultural phenomenon in recent years, thanks in no small part to the vocal support of figures like Elon Musk. The Tesla CEO has been an outspoken proponent of the meme-inspired cryptocurrency, frequently tweeting about it, and even referencing it at any given opportunity.
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 main man 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
Thus, 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.
Putting Musk’s power on the market causes
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 both 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. Also, it mentioned that the actions of the Twitter CEO suggest market manipulation. And, there was speculation about such occurrences with the most recent one relating to the Twitter logo change and DOGE’s hike.
On 7 March, Lookonchain reported that two whale addresses saved as “DDuX” and “D8ZE” profited from the DOGE pump and dump.
Whale “DDuX” (the 5th holder) reduced 1.1B $DOGE($95.2M).https://t.co/n6R2L7HKN7
Whale “D8ZE” (the 3rd holder) reduced 300M $DOGE($28.6M).https://t.co/nHLHf8pk60
Could these two addresses be related to @elonmusk? pic.twitter.com/Z9ku8O9MZK
— Lookonchain (@lookonchain) April 7, 2023
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. With respect to its price action, CoinMarketCap revealed that DOGE slipped from its quick run to $0.1.
DOGE: A clampdown on the hype
At the time of writing, DOGE was trading at $0.089, up more than 2.7% over the past 24 hours. A look at the memecoin’s technical chart revealed that the recent rally was short-lived. For one, its Relative Strength Index indicated that it was heavily overbought. Usually in such a scenario, the bears take control and induce selling pressure on the asset, driving its price down.
It appears that the traders who scrambled to take a profit on their DOGE gains may be complicit in its imminent price drop.
Source: TradingView
The bear case is only reinforced by the fact that the On Balance Volume has failed to rise with DOGE’s price. A high OBV is usually indicative of a positive volume pressure. Should the memecoin start on a downward trend, $0.080 would be the immediate support zone to look out for.
If this zone fails to contain the bears, $0.077 would emerge as the next support level. Meanwhile, $0.093 has emerged as the immediate resistance zone. Should the bulls breach this level, $0.098 would be the next target price.
Source: TradingView
In terms of volatility, the Bollinger Bands (BB) highlighted that DOGE had exited the contracting region. Up until 6 April, the asset’s price was on the same level in the upper band. This implies an overbought zone. And this in turn, has triggered a correction in DOGE’s price.
A $1000 investment would end in a…
I then progressed to ask ChatGPT about Dogecoin. This time, I queried if it is 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,
“Investing in Dogecoin for the long term is a wise decision. The cryptocurrency has a strong community of supporters, a growing acceptance as a form of payment, and the backing of influential figures such as Elon Musk”
Regardless, you should remember that ChatGPT is not a perfect tool as it remains 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, Elon Musk’s deep affection for Dogecoin does not seem like one that would 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.
However, OpenAI, the team behind ChatGPT, has addressed the safety concerns raised about the platform.
According to its 5 April press release, its latest model GPT-4 has been subjected to rigorous safety evaluation. Moreover, it has been working on improving its accuracy, research, and privacy worries. This could also extend to its knowledge of the crypto-ecosystem. OpenAI noted,
“Improving factual accuracy is a significant focus for OpenAI and many other AI developers, and we’re making progress. By leveraging user feedback on ChatGPT outputs that were flagged as incorrect as a main source of data—we have improved the factual accuracy of GPT-4”
Source: https://ambcrypto.com/chatgpt-dogecoin-price-prediction-4/