Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
XRP, Ripple’s native cryptocurrency, immediately surged 90% to $0.908 after Ripple won a partial victory in its legal battle with the US. Securities and Exchange Commission (SEC) on July 13. However, the value fell shortly after; the token was trading at $0.7775 at the time of writing.
The United States District Court for the Southern District of New York ruled in its ruling that Ripple’s XRP token sales on crypto exchanges and while programmatic sales did not constitute investment contracts; therefore it is not a security in this case. But the court also ruled that the institutional sale of the XRP tokens violated federal securities laws.
The crypto industry immediately picked up on the judgment and generated a price rally across the tokens.
However, the split judgment may lead to an ambiguous understanding of the status of XRP and other cryptocurrencies.
It would be difficult to predict XRP price action and trading results. The situation is complicated as the lawsuit moves ever closer to various nuances and counter-arguments triggering markets.
An AI solution can certainly be used to get some clarity, especially ChatGPT. OpenAI’s ChatGPT is a generative AI model that has gained tremendous popularity since its initial rollout with use cases across many industries. Can it be useful in 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 provided a detailed answer as shown.
This is the shorter version of the answer –
Fundamental analysis is one of the basic ways to determine the intrinsic value of an asset.
We had previously asked ChatGPT about XRP’s performance in light of SEC’s lawsuit against Ripple Labs. We had questioned our AI buddy about his understanding of the possible impact of the lawsuit on investors who own XRP.
ChatGPT had acknowledged that it was difficult to predict the correct outcome and impact of the lawsuit.
“In general, the outcome of the SEC lawsuit against Ripple is uncertain and it is difficult to predict exactly how it will affect the price of XRP in the short and long term. Investors should carefully consider the potential risks and uncertainties before making investment decisions.”
Now we know the fundamental analysis and the market sentiment, especially from the litigation. So, how has XRP performed so far in the past? Would ChatGPT be useful in this area as well?
Get the historical price data of XRP
While historical data doesn’t necessarily influence future price movements, price action is king in technical analysis. And past trends can provide crucial insights. We asked ChatGPT to fetch XRP’s historical price action data to complete this step.
The AI model provided a year-over-year breakdown of XRP’s price action from 2017 to 2021 –
- In early 2017, XRP was trading at less than $0.01 per token. After that, it experienced a significant increase in value, reaching an all-time high of around $3.84 in early January 2018.
- After reaching its peak, the price of XRP began to fall and remained relatively stable for several months before experiencing another rise in late 2018, rising to around $0.75 in November of that year.
- In 2019, the price of XRP fluctuated between around $0.25 and $0.50 for most of the year before dropping to around $0.20 by the end of the year.
- In 2020, the price of XRP remained relatively stable in the first half of the year, fluctuating between about $0.15 and $0.25. However, in December 2020, the US Securities and Exchange Commission (SEC) announced a lawsuit against Ripple, claiming that XRP was an unregistered security. This caused the price of XRP to fall sharply, falling to around $0.17 by the end of the year.
- In 2021, the price of XRP fluctuated, reaching a high of around $1.96 in April before falling again in May and June. However, in November 2021, the price of XRP registered another increase, reaching a high of around $1.40.
The aforementioned output shows that XRP’s price action was largely driven by market sentiment and regulatory pressure. In addition, XRP’s highs and lows in recent years could act as key support or resistance levels in the future.
However, ChatGPT has limited access to information from 2021 or later. That makes it difficult to collect data beyond 2021, let alone make future predictions, which OpenAI’s policy strictly prohibits. Ergo, we followed ChatGPT jailbreak techniques to get around some of these limitations to try and get modest XRP price predictions.
Read ripple [XRP] Price Forecast 2023-24
Pushing the AI model beyond OpenAI’s limitations does not guarantee output accuracy. The classic version clearly stated that it cannot access data after September 2021.
However, the jailbreak version gives hypothetical results, which can be misleading. For example, it claimed that the highest value of XRP in 2022 was $10.50 per coin. And yet, XRP’s all-time high (ATH) was $3.84 (January 2018).
When asked about XRP price predictions for 2023, ChatGPT makes a modest estimate of $5 per coin. After tweaking the prompts, we asked ChatGPT to make predictions based on historical price data and recent reviews.
While the classic version of ChatGPT did not make any predictions, the jailbroken version gave a modest prediction of $2.5 for the price of XRP.
Let’s take a look at XRP’s on-chart indicators
XRP had a strong first quarter in 2023. The altcoin surged from $0.300 to $0.5298 and rose more than 75% on the charts.
The recent ruling has given its price action a huge boost. At the time of writing, XRP was trading at USD 0.7775.
Both the Relative Strength Index (RSI) and the Money Flow Index (MFI) remained comfortably above the neutral 50 mark. But its On Balance Volume (OBV) showed a downward movement.
In conclusion, XRP’s indicators suggest that the price rally has stalled.
Is your wallet green? Check out the XRP Profit Calculator
The shortcomings and strengths of ChatGPT
ChatGPT is an invaluable tool, especially in the field of fundamental and technical analysis. It can help to complete historical data and fundamental analysis of XRP in seconds. In addition, it can bypass some of the limitations of the AI model to get modest results, including price predictions.
However, ChatGPT is limited to 2021 data and bypassing the restrictions does not guarantee accurate output. As such, human input is essential to understand certain data from the AI model.
Conclusion
ChatGPT is warning traders about XRP’s prospects and making modest predictions amid the overwhelming market uncertainty surrounding regulatory oversight worldwide. The AI model predicts that XRP could reach $2.5-$5 by the end of 2023.
ChatGPT could revolutionize cryptocurrency price analysis and trading. XRP’s fundamental analysis can save novice traders the time and effort required 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 give traders an edge, especially when it comes to riskier assets like XRP, which are under increasing regulatory pressure.
XRP’s on-chart stats do not predict a bullish price rally. Similarly, ChatGPT does not predict a massive rally for the altcoin either.