Dogecoin (DOGE) is in a moment of strong weakness, but AI Grok announces a mind-blowing price prediction. The component of euphoria that had accompanied the price action of the memecoin in November 2024 seems almost completely vanished, while the quotations risk breaking the support of 0.25 dollars.
In the meantime, however, the predictions of the AI chatbot Grok suggest the possibility of a significant bull run imminent for DOGE. Where is Elon Musk’s favorite cryptocurrency headed?
We find out in this article.
Dogecoin starts 2025 on the wrong foot: blood-red performance in the last month
Following the last major rally recorded by Dogecoin (DOGE) in the months of October and November, the price has done nothing but correct to the downside. Driven by the hype for the American elections, the memecoin had printed a stunning performance of +350% in just 60 days, but then the market quickly reversed its trajectory.
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From the top of December 8th, Dogecoin loses about 48% of its value, accompanied by a chart structure showing decreasing highs and lows. At the beginning of the new year, the coin attempted a rebound above the 0.40 dollar level, but the movement turned out to be just a bull trap to tap into liquidityty for exit.
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Now the prices are well below the EMA 50 on the daily time frame, highlighting a momentum fully controlled by the bears. Low volumes and an RSI tending towards oversold conditions frame this bearish dynamic, while sellers aim for the target of 0.17 dollars per token, which would result in a further 31% dump.
In the last 30 days, Dogecoin has accelerated its phase of decline, recording a drop of 33%, in the midst of the general collapse of digital assets. For the moment, the month of February, historically negative for the memecoin, offers a decrease of -23%. This value deviates significantly from the average of -1%, which takes into account all the monthly performances of the asset from 2014 to today.
Now the holders of DOGE hope that the cryptocurrency can replicate a pattern similar to that of 2017, where after the first two negative months, the bulls arrived to brighten the situation. On that occasion, Dogecoin printed green candles with double and triple-digit percentages for 3 consecutive months, only to succumb to the classic “sell in may and go away”.
AI Grok predicts a possible rally for Dogecoin (DOGE)
Although the price of Dogecoin seems crushed by an imposing bear pressure, generative AI tools like Grok show the presence of fertile ground for an imminent appreciation of the asset. This forecast aligns with the historical monthly performances recorded by DOGE during 2017, as observed in the previous paragraph.
In particular, Grok’s AI sees the level of 0.33 dollars, approximately 30% away from current prices, as the most feasible target by the end of February. In the Best Case scenario, the chatbot also talks about the possibility of seeing the price of Dogecoin at 4.12 dollars. This would be a bull movement of over 1550%, highly improbable but not entirely impossible.
The surprise approval of an ETF for DOGE could give the chart the push it needs to break all resistances and go into price discovery. Currently on Polymarket, the approval of an exchange-traded fund for DOGE by the end of 2025 is listed at 75%. Even a hypothetical media support from Elon Musk, who occasionally mentions the memecoin on X, could play a crucial role in attracting new investors.
Attention to volatility!
Dogecoin could really approach Grok’s super bullish prediction if the volatility index started to rise as it did during the bull run of 2021. On that occasion, the metric “Volatility 1Y” offered by Messari skyrocketed from the nominal value of 1 to over 4.4. To give an idea, the price of DOGE increased by 711% in a similar context, creating cascading liquidations on futures and attracting a huge mass of retail buyers.
If such a strong stimulus in terms of volatility does not arrive, we might forget about the bullish price targets hypothesized by the AI and instead need to scale down short-term goals. At this moment, a catalyst event is needed that can shake the market, creating the conditions for an unrestrained hype phase.
