I asked ChatGPT about the XRP price trajectory, the answer was ridiculous

Disclaimer: The information provided does not constitute financial, investment, trading or other advice and is solely the opinion of the author

Ripple (XRP) posted impressive results in the first quarter of 2023. In fact, the altcoin rose from $0.300 to $0.5298, gaining over 75% on the charts. The aforementioned increase was partly due to Bitcoin [BTC] Rally. In addition, investors are now very optimistic about the likely victory of Ripple Labs in the lawsuit against the SEC.

Even so, better price action analysis and trading performance may become more challenging for XRP. The situation is complicated as the process comes closer and closer, various nuances and counterarguments appear that trigger the markets.

An AI solution can certainly be used for some transparency, in particular F ChatGPT. OpenAI’s ChatGPT is a generative AI model that has gained immense popularity since its first implementation with use cases across multiple industries. Can it be helpful in analyzing and predicting XRP prices? Well, the answer is surprisingly basic.

XRP fundamental analysis using ChatGPT

We asked ChatGPT to provide a fundamental analysis of XRP and were offered a detailed answer as shown.

source: ChatGPT

This is the shorter version of the answer –

source: ChatGPT

Fundamental analysis is one of the basic ways to determine the intrinsic value of an asset. Given the ongoing US SEC lawsuit against Ripple Labs, it is crucial to understand the impact of the governing scenarios on the value of XRP.

So we went back to our AI buddy and asked him about his understanding of the potential impact of the lawsuit on investors holding XRP.

source: ChatGPT

As initially observed, the recent market rally has boosted XRP as well as other altcoins. However, it did not strengthen significantly, which proves investors’ reservations. The lawsuit upset investors after prompting exchanges such as Coinbase to remove XRP from their platform. However, if Ripple wins the case, the exchange recently hinted at plans to relist the asset.

Nevertheless, ChatGPT recognizes the difficulty of predicting the exact outcome and impact of a lawsuit.

“Overall, the outcome of the SEC lawsuit against Ripple is uncertain, and it is difficult to predict exactly how this will affect the price of XRP in the short and long term. Investors should carefully consider potential risks and uncertainties before making any investment decisions.”

Now we know the fundamental analysis and market sentiment, especially from the side of the lawsuit. So how has XRP fared so far in the past? Can ChatGPT be helpful on this front as well?

Download historical XRP price data

While historical data does not necessarily influence future price movements, price action is king in technical analysis. And past trends can provide key insights. We asked ChatGPT to download historical XRP price data to complete this step.

AI model gave a year-by-year breakdown of XRP price action from 2017 to 2021

  • In early 2017, the price of XRP was less than $0.01 per token. It then saw a significant increase in value, reaching an all-time high of around $3.84 in early January 2018.
  • After peaking, the price of XRP began to decline and remained relatively stable for several months before picking up again in late 2018, to around $0.75 in November this 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 towards the end of the year.
  • In 2020, the price of XRP remained relatively stable in the first half of the year, hovering between around $0.15 and $0.25. However, in December 2020, the US Securities and Exchange Commission (SEC) announced a lawsuit against Ripple, claiming that XRP is an unregistered security. This caused the price of XRP to plummet, falling to around $0.17 by the end of the year.
  • In 2021, the XRP price fluctuated, peaking at around $1.96 in April before falling again in May and June. However, in November 2021, the price of XRP saw another increase, reaching a high of around $1.40.

The aforementioned result shows that the price action of XRP was largely determined by market sentiment and regulatory pressure. In addition, the highs and lows of XRP in previous years may represent key levels of support or resistance in the future.

However, ChatGPT has limited access to information from 2021 or earlier. This makes it difficult to pull data beyond 2021, let alone projections into the future, which OpenAI’s policy strongly prohibits. Ergo, we used ChatGPT jailbreak techniques to bypass some of these restrictions to try and get some modest XRP price predictions.


Read Ripple [XRP] Price forecast 2023-24


Pushing the AI ​​model beyond the limits of OpenAI does not guarantee the accuracy of the output. The classic version clearly stated that there was no access to data beyond September 2021. However, the jailbreak version gives hypothetical results that may be misleading. For example, he claimed that the highest value of XRP in 2022 was $10,000 per coin. And yet the true high was $0.93 in March.

source: ChatGPT

Pushing the AI ​​model beyond the limits of OpenAI does not guarantee the accuracy of the output. The classic version clearly stated that there was no access to data beyond September 2021. However, the jailbreak version gives hypothetical results that may be misleading. For example, he claimed that the highest value of XRP in 2022 was $10,000 per coin. And yet the true high was $0.93 in March.

source: ChatGPT

When asked for XRP price predictions for 2023, ChatGPT makes a shocking estimate of $10,000.

source: ChatGPT

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

source: ChatGPT

While the classic version of ChatGPT contained no predictions, the jailbroken version did provide a modest XRP price prediction. It is projected to be worth $2.75 by the end of 2023, making it the most valuable asset in human history.

XRP retested historical levels and yet…

Source: XRP/USDT, TradingView

XRP traded well below $0.47 all week. At the time of publication, it was at $0.426, reflecting a decline of around 7% over the past seven days.

In the meantime, we are witnessing a slight decline in both the Relative Strength Index (RSI) and Balance Sheet Volume (OBV), suggesting a downtrend for some time.

These observations could have interesting implications for XRP’s short-term outlook.

The last increase in the price of XRP came after Ripple answer to the US Securities and Exchange Commission (SEC) supplementary letter on its request for summary judgment.


Is your portfolio green? Check XRP Profit Calculator


Cons and strengths of ChatGPT

ChatGPT is an invaluable tool, especially on the fundamental and technical analysis front. It can help you gather historical data and fundamental XRP analysis in seconds. Moreover, it can circumvent some limitations of the AI ​​model to produce modest results, including price predictions.

However, ChatGPT is limited to 2021 data, and circumventing its limitations does not guarantee accurate output. As such, human input is key to understanding some of the AI ​​model data.

Application

ChatGPT is optimistic on Ripple despite overwhelming market uncertainty due to regulatory pressure. The AI ​​model predicts that XRP could hit $1.5 or $10,000 by the end of 2023.

ChatGPT has the potential to revolutionize price analysis and cryptocurrency trading. His fundamental analysis of XRP can save novice traders the time and effort needed to understand the asset.

At press time, XRP was bullish despite impending selling pressure on the daily chart. As such, it may retest May 2022 levels and move higher if BTC remains bullish.

In the meantime, traders can learn more about ChatGPT to create and test trading strategies to improve efficiency and trading results. This could give investors an edge, especially with riskier assets like XRP, which is facing increased regulatory pressure.

Leave a Reply

Your email address will not be published. Required fields are marked *