I asked ChatGPT XRP’s price prediction and these were the bullish signals it gave me

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

XRP registered an impressive performance in Q1 of 2023. In fact, the altcoin rallied from $0.300 to $0.585, appreciating by over 90% on the charts. The aforementioned hike was partly due to Bitcoin’s [BTC] rally. Additionally, investors are now really upbeat about Ripple Labs’s likely lawsuit victory against the SEC. 

Even so, 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.

An AI solution can certainly be used to attain some clarity, specifically, ChatGPT. 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 XRP price analysis and prediction? Well, the answer is surprisingly basic.

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 retested historical levels and yet…

Source: XRP/USD, TradingView

$0.60 has emerged as the immediate resistance zone for XRP on the charts. On four separate occasions, the bulls have led to the charge to this price level with considerable momentum. However, the bears managed to pull the price down every time. The last retest came towards the end of last month, with XRP climbing as high as $0.57 on 29 March, before pulling back to $0.50. 

Earlier this week, XRP breached the key support level of $0.50 and fell as low as $0.48. This was followed by a brief rally to its weekly high of $0.52.

At the time of writing, XRP was trading at $0.51, gaining by more than 2% over the past 24 hours. $0.48 has emerged as the immediate support zone for the crypto. In the event that this level is breached, $0.41 will be the next price level to watch out for.

In the meantime, the upward trajectory of the Relative Strength Index and On Balance Volume have both been cut short. These observations could have interesting implications for XRP’s short-term. 

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