I asked ChatGPT to predict 2023 XRP prices, the AI bot obliged
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Ripple (XRP) registered an impressive performance in Q1 of 2023. In fact, the altcoin rallied from $0.300 to $0.5298, appreciating by over 75% 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, specificallyF 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.
This is the shorter version of the response –
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.
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. However, the jailbreak version gives hypothetical outputs, which can be misleading. For example, it claimed XRP’s highest value in 2022 was $10,000 per coin. And yet, the real highest value was $0.93 in March.
Asked about 2023 price predictions for XRP, ChatGPT makes a modest estimate of $5.
After tweaking the prompts, we asked ChatGPT to make predictions based on 2021 historical data.
Though the classic version of ChatGPT did not make any prediction, the jailbroken version indeed provided a humble prediction of $1 for XRP’s price.
XRP retested historical levels and yet…
On 30 May, XRP’s price finally crossed the $0.50-price mark after mid-April. It was trading at $0.519 at press time, reflecting a rise of 12.82% over a week.
In the meantime, we are witnessing a slightly bullish movement of the Relative Strength Index (RSI) and a downward movement of the On Balance Volume (OBV), suggesting a rather volatile trend for some time. These observations could have interesting implications for XRP’s short-term prospects.
XRP’s last surge in price followed Ripple’s response to the U.S. Securities and Exchange Commission’s (SEC) letter of supplemental authority regarding its motion for summary judgment.
#XRPCommunity #SECGov v. #Ripple #XRP The Ripple Defendants have filed their Response to the SEC’s Letter of Supplemental Authority regarding the SEC’s Motion for Summary Judgment. pic.twitter.com/SPWnzxhKxx
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) April 13, 2023
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.
ChatGPT is bullish on Ripple 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.
At press time, XRP was bullish despite looming sell pressure on the daily chart. As such, it could retest its May 2022 levels and surge upward if BTC remains bullish.
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.