I asked ChatGPT XRP’s price prediction – “Coin could hit $1.5 or $10K by…”

Ripple’s [XRP] performance has been subdued since the U.S. Securities and Commission [SEC] lawsuit in 2020. In fact, since the case, Bitcoin’s [BTC] subsequent price rallies haven’t pumped XRP like other altcoins. 

However, XRP outperformed BTC on weekly charts at press time, rallying 15% compared to BTC’s 5%, according to CoinMarketCap. The impressive performance was due to renewed optimism that Ripple may win the lawsuit against SEC. 

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Ripple (finally) filed the Voyage bankruptcy Judge’s decision.

The Judge uses abnormally strong language, stating that the U.S. regulators themselves cannot even agree on what criteria to use in deciding whether crypto is a security (Fair Notice).

…

We are getting close… https://t.co/zvLQ5zEWUV pic.twitter.com/0nCSMVuG0C

— Jeremy Hogan (@attorneyjeremy1) March 20, 2023

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.

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.

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.

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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. In fact, 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 – Is half a dollar value within reach?

Source: XRP/USDT on TradingView

The renewed optimism on Ripple Labs’ chances of winning the lawsuit pushed bulls to break above the descending channel. It appreciated 30%, reaching close to its pre-FTX level of $0.5. But XRP faced a sharp price rejection at $0.4936, inviting aggressive sellers to claw back the recent gains. 

Bulls found steady ground at the 50% Fibonacci retracement level of $0.4203. However, the recovery was at stake as sellers gained entry into the market after BTC temporarily lost hold of $28K. 

Bulls could attempt to retest the 78.6% Fib level ($0.4622) if BTC maintains the $28K and surges upwards. XRP could hit $0.51 if bulls clear the hurdles at $0.4622 and $0.4936. 

But a close below 50% Fib level ($0.4203) could expose XRP to more selling pressure. The potential support levels that could hold the drop include the 200 EMA ($0.4059), 38.2% Fib level ($0.4030), or the channel’s upper boundary at 23.6% Fib level ($0.3816). 

The Relative Strength Index (RSI) retreated from the overbought zone but was still above the 50-mark, showing buying pressure reduced, but the structure remained bullish. However, the Chaikin Money Flow (CMF) moved southwards, indicating sellers’ influence in the market.

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 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.

However, its limited knowledge and inability to handle live price data can limit traders in maximizing the AI model’s true potential.

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.