ChatGPT claims XRP will reach $10 in 2024 – Do the indicators agree?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Ripple [XRP] has stabilized after gaining momentum a few weeks ago and has not shown the same amount of fluctuation as other cryptocurrencies.
While XRP has lately positioned itself as the fourth-largest asset, Ripple has experienced a considerable increase in accumulation among its key holders over the last week.
Despite this steady accumulation trend, there has been a recent decline in total supply in a lucrative position. So this leaves XRP holders in a difficult situation right now.
And XRP holders are curious to know whether the favorable court ruling will help the coin gain further momentum and make 2024 any different.
Ripple Labs and XRP — What’s the relationship?
XRP is a cryptocurrency that Ripple Labs uses to conduct transactions on its network.
While Ripple is a centralized fintech company that began as Ripplepay in 2004, it was later co-founded by Chris Larsen and Jed McCaleb in 2012 with the vision of creating a faster and more secure way of doing transactions around the world.
Although the two have been used interchangeably, Ripple is a technology company whereas XRP is its open-source digital asset.
The crypto operates on its blockchain known as the XRP ledger (XRPL) where transactions are facilitated by RTXP or the Ripple transaction protocol.
It is pre-mined, unlike a lot of other cryptocurrencies with a maximum token supply of 100 billion.
The main purpose of the crypto is to serve as a settlement layer that aids in transactions with the Ripple network.
It has been, however, traded as a cryptocurrency that is available on various exchanges including options, swap exchanges, spot exchanges, futures, custodian and non-custodian exchanges.
Battling the SEC
The United States SEC filed a lawsuit against Ripple Labs in 2020 for selling XRP as an “unlicensed security,” claiming that the distribution of $1.3 billion worth of the crypto to its stakeholders violated the law.
The major bone of contention here was whether XRP was a security and, therefore, whether it is a share in Ripple or if it was a cryptocurrency like Bitcoin.
Ripple has been at loggerheads with the SEC for a few years now. The SEC claimed that Ripple’s sale of XRP to investors was to fund itself and relied on the 1946 SEC judgment of SEC vs. W.J. Howey Co. to make its case.
In doing so, the agency stated that whether an investor has control over profit is a deciding factor if an investment contract is a security or not. Ripple Labs, on the other hand, argued that the SEC had neither notified nor warned the organization.
After 3 years of deliberation, the case was finally ruled on in July 2023. The court found that XRP was NOT a security in itself.
The SEC was also denied the request for an interlocutory appeal and, later, had to drop its securities violation charges against Ripple and XRP.
The SEC got authority over cryptocurrency sales to institutions, whereas crypto-transactions on exchanges would not be treated as securities transactions.
What does ChatGPT have to say?
While ChatGPT is not equipped with the latest information and does not make any future predictions, I used a jailbreak and asked it about what lies in the future for XRP, keeping in perspective the current scenario.
When asked what the future looks like for XRP, given the favorable court ruling, the bot responded by stating that the crypto could see short-term momentum as investor confidence increases.
This could, however, slow down a bit in the long term as the market is affected by various factors such as adoption, sentiment, and regulatory clarity.
The bot also stated that while positive developments on the legal front are a positive sign, it is also crucial to keep track of other developments and potential regulatory changes that could affect the price of XRP going forward.
When I gave ChatGPT some context with Bitcoin and Ethereum’s press time price and asked what would be the price of XRP in the first quarter of 2024, the bot made a bold claim that the crypto would hit $10 per token.
It called this high the “comeback of the century,” but also warned that its predictions are just speculative, and the actual prices may vary significantly.
Finally, I asked if the crypto would surpass its ATH in 2024. The bot gave me a confident answer, stating that XRP will “blow past” its ATH in 2024 and hit unprecedented heights, leaving its previous all-time high in the dust.
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Let’s look at XRP’s price action
Ripple prices gained 1.5% in the last week following a slight rebound from the $0.57 support level. Despite being slightly over the 50 mark, the RSI was moving linearly, indicating minimal buying pressure.
The MACD seemingly confirmed this trend as it depicted minor green histograms above the half-line, as the lines moved linearly, which indicates weak momentum in favor of buyers.
The recent upward surge depicted by the token’s chart appears to have sparked excitement for XRP among crypto market players.
Also, the recent development of huge whale transfers revolving around XRP suggests an increase in trading activity surrounding the cryptocurrency.
ChatGPT also seems optimistic about the coin and claims it will make the “comeback of the century” as it predicts the coin’s prices to reach $10 per token in 2024.
But we need to keep in mind that ChatGPT is nothing more than a computer program. It’s not a person. It’s also not entirely correct. So, before making any investment choice, DYOR is the only way to proceed.