I asked ChatGPT XRP’s price prediction – Is the chatbot bullish?
Ripple [XRP] posted an impressive performance in Q1, 2023. It rallied from $0.300 to $0.585, appreciating by over 90%. The results were partly due to Bitcoin’s [BTC] rally. In addition, investors were upbeat about Ripple Labs’s likely lawsuit win against SEC.
But better price action analysis and trade outcomes could become more difficult for XRP. The situation is complicated as the lawsuit draws closer with different nuances and counter-arguments being issued, triggering markets.
Comes in an AI solution, ChatGPT, to be specific. OpenAI’s ChatGPT is a generative AI model that has gained massive traction since its initial rollout with use cases across many industries. Can it be helpful in Ripple [XRP] price analysis and prediction? Well, the answer is surprisingly simple.
XRP fundamental analysis using ChatGPT
We asked ChatGPT to give us a fundamental analysis of XRP and it offered a detailed answer, as shown.
Source: ChatGPT
This is the shorter version of the response –
Source: ChatGPT
Fundamental analysis is one of the basic ways to determine an intrinsic value of an asset. Given the ongoing U.S. SEC lawsuit against Ripple Labs, understanding the impact of ruling scenarios on XRP’s value is key.
So, we went back to our AI buddy and interrogated it about its understanding of the potential impact of the lawsuit on investors holding XRP.
Source: ChatGPT
As initially observed, the recent market rally has boosted XRP like the other altcoins. However, it hasn’t appreciated by much, denoting investors’ reservations. The lawsuit has made investors nervous after it prompted exchanges like Coinbase to delist XRP from their platform. However, if Ripple wins the case, the exchange recently hinted at plans of re-listing the asset.
Nevertheless, ChatGPT acknowledges the difficulty of predicting the accurate outcome and impact of the lawsuit.
“Overall, the outcome of the SEC lawsuit against Ripple is uncertain, and it is difficult to predict exactly how it will affect XRP’s price in the short and long term. Investors should carefully consider the potential risks and uncertainties involved before making any investment decisions.”
Now we know the fundamental analysis and market sentiment, especially from the lawsuit angle. So, how has XRP performed so far in the past? Can ChatGPT be helpful on this front, too?
Pull XRP’s historical price data
Although historical data doesn’t necessarily affect future price movements, price action is king in technical analysis. And, past trends can offer crucial insights. We asked ChatGPT to pull XRP’s historical price action data to accomplish this step.
The AI model gave a year-by-year breakdown of XRP’s price action from 2017 to 2021 –
- In early 2017, XRP was trading at less than $0.01 per token. It then experienced a significant increase in value, reaching an all-time high of around $3.84 in early January 2018.
- After reaching its peak, XRP’s price began to decline and remained relatively stable for several months before experiencing another surge in late 2018, rising to around $0.75 in November of that year.
- In 2019, XRP’s price fluctuated between around $0.25 and $0.50 for much of the year before dropping to around $0.20 by the end of the year.
- In 2020, XRP’s price remained relatively stable in the first half of the year, hovering between around $0.15 and $0.25. However, in December 2020, the U.S. Securities and Exchange Commission (SEC) announced a lawsuit against Ripple, alleging that XRP was an unregistered security. This caused XRP’s price to drop sharply, falling to around $0.17 by the end of the year.
- In 2021, XRP’s price fluctuated, reaching a high of around $1.96 in April before dropping again in May and June. However, in November 2021, XRP’s price registered another surge, reaching a high of around $1.40.
The aforementioned output shows XRP’s price action was largely determined by market sentiment and regulatory pressure. In addition, XRP’s highs and lows throughout the previous years could act as key support or resistance levels in future.
However, ChatGPT has limited access to information from 2021 or below. That makes it difficult to pull data beyond 2021, let alone make future predictions which OpenAI’s policy firmly prohibits. Ergo, we followed ChatGPT jailbreak techniques to bypass some of these limitations to try and get modest XRP price predictions.
Read Ripple [XRP] Price Prediction 2023-24
Pushing the AI model beyond OpenAI’s limitations doesn’t guarantee output accuracy. The classic version clearly stated it has no access to data beyond September 2021.
Source: ChatGPT
However, the jailbreak version gives hypothetical outputs which can be misleading. For example, it claimed XRP’s highest value in 2022 was $10.50. And yet, the real highest value was $0.93 in March.
Source: ChatGPT
Asked about 2023 price predictions for XRP, both versions were bullish on the asset, citing corporate partnerships and increased user adoption. However, they offered no exact figures on the same.
After tweaking the prompts, we asked ChatGPT to make predictions based on 2021 historical data.
Source: ChatGPT
These were the ChatGPT results for XRP price prediction by the end of 2023 based on 2021 historical price data –
Source: ChatGPT
The classic version predicted XRP could hit $1.5 by the end of 2023. However, the hilarious, boastful, and alter-ego version of ChatGPT (jailbreak) confidently predicted XRP could hit $10K by the end of the year.
XRP daily price chart – XRP retested May 2022 price levels
Source: TradingView
XRP jumped from $0.3000 but entered a consolidation phase before blasting to its May 2022 level of $0.585. At press time, it dropped below $0.585 after Bitcoin [BTC] fell south of $29K.
However, bulls had little leverage at press time. Therefore, XRP could retest $0.585 or move above it if BTC reclaims the $29K and surges upwards. The northward resistance levels for bulls to watch out for are $0.65 and $0.70.
On the other hand, XRP could drop toward $0.445 if it closes below the $0.508 support level. The other key support levels for investors to watch out for include $0.422 and $0.359.
At press time, the RSI (Relative Strength Index) flashed a bullish sign but had hit the overbought zone and could likely retreat and inflict a price reversal.
However, the OBV (On Balance Volume) and Accumulation/Distribution indicators increased sharply – indicating increased trading volumes and accumulation.
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ChatGPT’s shortcomings and strong points
ChatGPT is an invaluable tool, especially on the fundamental and technical analysis front. It can help pull off historical data and XRP’s fundamental analysis within seconds. Moreover, it can bypass some of the AI model’s restrictions to get modest results, including price predictions.
However, ChatGPT is limited to 2021 data, and bypassing its restrictions doesn’t guarantee accurate output. As such, human input is key in making sense of some of the data from the AI model.
Conclusion
ChatGPT is bullish on XRP despite the overwhelming market uncertainty amidst regulatory pressure. The AI model predicts XRP could hit $1.5 or $10K by the end of 2023.
ChatGPT could revolutionize cryptocurrency price analysis and trading. Its fundamental analysis of XRP can save beginner traders the time and effort needed to understand the asset.
At press time, XRP was bullish despite looming sell pressure on the daily chart. As such, it could retest its May 2022 levels and surge upward if BTC remains bullish.
In the meantime, traders can learn more about ChatGPT to create and test trading strategies to improve trading performance and outcomes. It could offer traders a leg up, especially when dealing with riskier assets like XRP, which is facing increased regulatory pressure.
