Dogecoin Price Could Appreciate by More Than Seven-Fold if It Secures a More Substantial 24-Hour Volume

Despite this downturn, some analysts still see potential for a strong rebound. Most recently, market veteran Raoul Pal suggested that Dogecoin had the most powerful chart in all of crypto.

As the bear market continues to grip the crypto market, Dogecoin (DOGE) has seen its price flounder amidst the downturn. Currently trading at around $0.2793, the meme coin has seen a 42% decline from its December 2024 peak of $0.4843.

However, some analysts still see potential for a strong rebound. Most recently, market veteran Raoul Pal suggested that Dogecoin had the most powerful chart in all of crypto. Meanwhile, Ali Martinez has predicted an imminent push to $4.

While these bullish projections abound, the extent of any recovery rally is still up for grabs. However, one key factor that could determine how much the leading meme coin will surge is a spike in trading volume, especially buy-side volume.

To assess how such a volume spike could dictate Dogecoin’s rebound, we asked OpenAI’s LLM chatbot ChatGPT to provide some projections on Dogecoin’s potential price if it achieves a 24-hour trading volume of $20 billion.

In response, ChatGPT noted that Dogecoin's current 24-hour trading volume is around $2.53 billion. The chatbot used data from Dogecoin's volume on Feb. 14, as the meme coin crossed the $2 billion mark for the first time in a week.

According to ChatGPT, a surge to $20 billion would indicate a 7.9x increase in trading volume. While volume alone doesn't dictate price movement, ChatGPT added that higher volume usually brings increased demand and liquidity, which could lead to price appreciation.

Citing this theory, the AI chatbot suggested that if Dogecoin price scaled proportionally with the volume increase, it could also increase by 7.9x from the current value of $0.2793. Specifically, this would lead to a price of $2.21. Interestingly, analyst Alan believes a rally to the $2.2 mark is on the horizon.

However, ChatGPT noted that this projection assumes demand rises at the same rate as volume, which is not always the case in real market conditions.

Several factors could influence whether Dogecoin actually reaches this price level. According to ChatGPT, the balance between buy and sell orders is important. If the increase in volume is driven primarily by buy-side pressure, Dogecoin could exceed the estimated price.

Conversely, if a significant portion of the increased volume comes from sell orders, the price impact may not reach this projection. For instance, Dogecoin saw over half of this projected volume on Feb. 3, with $11 billion in 24-hour volume. However, its price only rose to $0.2925 that day.

This is because there was mostly a balance between buy and sell orders instead of a dominance of buy orders. Additional elements such as overall market sentiment and Bitcoin’s performance could also influence Dogecoin’s price action.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect Cryptopolitan’s opinion.