The cryptocurrency market has been under significant downward pressure recently, with Dogecoin (DOGE) being no exception. Currently, Dogecoin is trading slightly above $0.10, having recently hit a low of $0.091. The previous support level of $0.10 has now turned into a resistance point, making $0.091 the new support level.
The overall market sentiment is bearish, significantly influenced by the broader cryptocurrency downturn and negative sentiment surrounding Bitcoin.
In this context, Finbold decided to consult the most advanced version of OpenAI’s flagship artificial intelligence (AI) platform – ChatGPT-4o – to predict Dogecoin’s price as DOGE recently fell below its $0.10 support.
Notably, ChatGPT-4o has provided a short-term prediction after receiving the proper context.
Key factors driving DOGE price
Due to the broader market downturn, the DOGE price has taken a substantial fall in the past 24 hours, giving a bearish outlook for the meme coin. Market sentiment further supports this bearish outlook.
The fear, uncertainty, and doubt (FUD) levels are high, with the Fear & Greed Index showing a reading of 29 (Fear). High FUD levels are often contrarian indicators, presenting potential buying opportunities for bold traders who capitalize on the negative sentiment.
Additionally, recent whale activity has added to the bearish pressure. A significant whale dumped 400 million DOGE, worth $41.08 million, onto Binance, which has contributed to the downward price movement.
Despite this, the whale still holds a considerable amount of Dogecoin, indicating some level of retained confidence in the asset’s long-term potential.
The broader market’s influence, particularly Bitcoin’s performance, heavily impacts Dogecoin’s price. If Bitcoin continues to decline, it is likely that Dogecoin will follow suit. Conversely, stabilization or a rebound in Bitcoin could positively affect Dogecoin.
ChatGPT-4o’s prediction for DOGE price
According to ChatGPT-4o, given the current market conditions, Dogecoin is expected to trade within the range of $0.080 to $0.105 over the next month.
This prediction balances the potential for a short-term rebound, driven by technical patterns and oversold indicators, against the persistent bearish sentiment and external market pressures.
While there are signs of potential short-term recovery, the overall outlook for Dogecoin remains cautious. The combination of technical patterns, market sentiment, and broader influences suggests that Dogecoin will likely continue to face volatility, trading between $0.080 and $0.105 in the coming month.
Coinglass data illustrated a 14.88% decline in DOGE’s Futures Open Interest (OI) to $514.97 million, aligning with the coin’s price fall.
However, the derivative volume spiked 57% to $3.13 billion, fueling contrasting sentiments. The Relative Strength Index (RSI) moved along 24, hinting that the asset is in oversold territory. This could mean that a potential market recovery ahead could also see a possible DOGE price rebound. Nonetheless, current market sentiments remain bearish.
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