Dogecoin [DOGE] is the most popular memecoin which is also known for its love-hate relationship with Elon Musk, the boss of both Tesla and X (formerly Twitter).
An interesting connection emerged last month when the Wall Street Journal reported that Musk secret funded the development of the Dogecoin project, citing an upcoming biography of the tycoon.
Indeed, Musk had even tweeted last month,
Musk had even replaced X’s blue bird logo with the DOGE logo in April.
However, things seemed to be turning sour as Musk’s lawyers sought to have the lawsuit, brought by a group of dissatisfied DOGE investors accusing him of market manipulation and insider trading, 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 lapped up the judgement instantly, generating a price rally across tokens.
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.
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,
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.
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 $0.0615 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. DOGE was trading at $0.0615 at press time, its price nearly the same as it was a week earlier.
While the memecoin’s Relative Strength Index (RSI) rested just along the neutral 50-mark, its Money Flow Index (MFI) rested much below it. Its On Balance Volume (OBV) showed a slight uptick.
The on-chart metrics point towards a bearish 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 asked ChatGPT when it sees DOGE hitting the $1-price mark. The AI bot could not give a definitive response to the query.
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.
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.
ChatGPT asks us to be cautious of investing in Dogecoin. Its on-chart indicators suggest a bearish price trend in the short run. We should be careful as ever, as the crypto industry is as volatile as it gets.