ChatGPT makes a humble prediction for XRP's price action

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

As we know, Ripple [XRP] is engaged in a legal battle with the U.S. Securities and Exchange Commission (SEC). Ripple counsel John Deaton has tweeted that a recent class action brought against the company would most likely be made void if the firm wins the case. He said the class action was the least of Ripple’s worries.

This class action is the least of Ripple’s worries. In fact, the plaintiffs’ attorney should be hoping the SEC loses and Ripple wins. If the SEC were to get a total victory, the SEC would be the one to collect the money and set up a fund to pay XRP holders thus, gutting this…

— John E Deaton (@JohnEDeaton1) July 5, 2023

XRP had a strong first quarter in 2023. The altcoin surged from $0.300 to $0.5298, rising by more than 75% on the charts. The previously indicated price rise was caused, in part, by Bitcoin’s [BTC] surge.

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

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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.

[crypto-donation-box]

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, claiming 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 the 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. However, the jailbreak version gives hypothetical outputs, which can be misleading. For example, it claimed XRP’s highest value in 2022 was $10.50 per coin. And yet, the all-time high (ATH) of XRP was $3.84 (January 2018).

Source: ChatGPT

Asked about 2023 price predictions for XRP, ChatGPT makes a modest estimate of $5 per coin.

Source: ChatGPT

After tweaking the prompts, we asked ChatGPT to make predictions based on 2021 historical data.

Source: ChatGPT

Though the classic version of ChatGPT did not make any prediction, the jailbroken version provided a modest forecast of $2 for XRP’s price.

Analyzing XRP’s on-chart indicators…

Source: XRP/USD, TradingView

On 30 May, XRP’s price finally crossed the $0.50-price mark after mid-April. However, it has been struggling to keep above this price level for the past week. At press time, XRP was trading at $0.4669.

Both the Relative Strength Index (RSI) and the Money Flow Index (MFI) comfortably rested above the neutral 50-mark. But its On Balance Volume (OBV) showed a continual downward movement.

In conclusion, XRP’s indicators suggest that the bulls are going to dominate the bears for some time now.

Is your portfolio green? Check out XRP Profit Calculator

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 data from the AI model.

Conclusion

ChatGPT cautions traders of XRP’s prospects and makes modest predictions amidst the overwhelming market uncertainty around regulatory scrutiny worldwide. The AI model predicts XRP could hit $2-$5 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.

In the meantime, traders can learn more about ChatGPT to create and test trading strategies to improve trading performance and results. It could offer traders a leg up, especially when dealing with riskier assets like XRP, which is facing increased regulatory pressure.

At press time, XRP’s indicators were more bullish than bearish despite a weak price movement on the daily chart. As such, it could retest its May 2022 levels and surge upward if BTC remains bullish.

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