Elon Musk and Tesla (NASDAQ: TSLA) have been cleared in a $258 billion lawsuit that accused them of manipulating Dogecoin (DOGE) prices.
Filed in June 2022 by a group of Dogecoin investors, the lawsuit claimed that Musk orchestrated a “Dogecoin Pyramid Scheme” by promoting the meme coin on social media. The investors alleged that Musk’s tweets caused a significant spike and subsequent crash in Dogecoin’s value, leading to substantial financial losses.
On August 29, 2024, U.S. District Judge Alvin Hellerstein in New York dismissed the case, ruling that the plaintiffs had mischaracterized Musk’s tweets about Dogecoin. The judge observed that Musk’s statements were “aspirational and puffery, not factual.”
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With the legal matter resolved, Musk’s influence on Dogecoin remains significant. The dismissal of the lawsuit has removed a key negative sentiment, potentially stabilizing Dogecoin’s market outlook.
AI predicts DOGE’s price
In this line, Finbold utilized OpenAI’s most advanced artificial intelligence (AI) tool, ChatGPT-4o, to predict Dogecoin’s price at the end of 2024. The AI platform suggested that with the legal threat removed, market responses to Musk’s future comments might become more consistent, though still volatile.
The AI model also highlighted that broader market trends, particularly Bitcoin (BTC) and general crypto market movements, will influence Dogecoin’s price. Favorable market trends toward the end of 2024 could benefit Dogecoin.
Additionally, advancements in adoption and utility, such as new integrations and technological upgrades, could enhance its value. Macroeconomic conditions, including interest rates and inflation, will also play a role, as cryptocurrencies often serve as alternative assets during financial instability.
Based on these factors, the AI tool noted that in a bearish case, if the broader cryptocurrency market faces difficulties or Dogecoin struggles to gain significant adoption, its price could decrease to a range of $0.05 to $0.07.
In a neutral case, if Dogecoin maintains its current level with only moderate fluctuations, it might trade between $0.10 and $0.15. In a bullish case, if the market experiences positive momentum and Dogecoin benefits from improved sentiment and broader adoption, its price could rise to between $0.20 and $0.30, or potentially even higher.
DOGE gearing up for a breakout
Currently, DOGE is trading in tandem with the general crypto market. However, an analysis shared by crypto analyst Trader Tardigrade in an X post on August 30 indicated that the meme coin is gearing up for a possible breakout.
The analyst noted that Dogecoin has been consistently developing solid bases within chord segments, a pattern that has historically been a precursor to substantial price increases. This pattern emerged in 2017-2018 when Dogecoin formed a base within a chord segment, followed by an “intersection” point in late 2018, which sparked a notable price rally.
A similar scenario unfolded in 2019-2020, where another base developed, leading to an intersection in early 2021. This intersection coincided with Dogecoin’s meteoric rise to new all-time highs, marking one of the cryptocurrency’s most significant surges.
The expert noted that the token is again forming a base within a chord segment, with the next intersection predicted for 2024-2025. Based on this, there is anticipation that DOGE could experience another significant upward movement once it reaches this critical intersection point.
DOGE price analysis
As of press time, Dogecoin was trading at $0.1017, with daily gains of about 0.3%. On the weekly chart, the meme token is down over 6%.
In summary, while Musk has won the lawsuit related to promoting Dogecoin, the token is still heavily influenced by overall market sentiment for its next trajectory. However, Musk’s influence should not be ignored, especially with the possible integration of DOGE into X payments.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
