ChatGPT has this to say about XRP’s 2024 price prediction
admin posted: "Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer's opinion. It's a tricky time for XRP holders right now. While the last few months have been bullish on the back of" Crypto Timeless
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer's opinion.
It's a tricky time for XRP holders right now. While the last few months have been bullish on the back of the Ripple-SEC ruling, there's still some uncertainty around too. Interestingly enough, while the rest of the market has appreciated significantly lately, XRP hasn't. What this means is difficult to say at this moment, but AI bots like ChatGPT might have something to say about it.
Even so, XRP remains one of the market's biggest cryptos, with a market cap of over $33.5 billion.
Hence, the question – With 2023 ending on such a note, will 2024 be any different? How high can XRP really go in the new year?
In this article, we take a look at the crypto, its clash with the Securities and Exchange Commission, its price action, and ChatGPT's predictions about XRP.
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
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 or not 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 or warned the organization.
After 3 years of deliberation, the case was finally ruled on in July 2023. The court found that XRP was in fact 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.
XRP's price action
Source: XRP/USD, TradingView
XRP registered an initial hike immediately after the court ruling. On the back of the same, the crypto hiked to a local high in mid-November. However, it fell soon after. And, despite the larger market's uptick, XRP has been unable to hit the same levels again. At the time of writing, it was priced at $0.62 on the charts.
The bearishness in XRP's market was backed up by the fact that the Parabolic SAR's dotted markers were well above the price candles. Additionally, the RSI was holding on close to the 50-level, a sign that the market was neither overbought or oversold.
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.
Source: ChatGPT
This could, however, slow down a little 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.
Whether or not XRP reaches the $10-mark in the first half of 2024 is something only time will tell. To its credit, the crypto's price did hike somewhat right after the ruling and has been trading within a zone after that. Hence, things are looking a little optimistic for the crypto. ChatGPT is particularly optimistic about XRP's future too.
Other developments might come to the fore too. For instance, if more and more exchanges start re-listing the crypto, bullish momentum can push XRP to new heights on the price charts. Simply put, at the moment, the prospect of XRP being re-listed hasn't been completely priced in yet.
That being said, ChatGPT is just a guide, just a manual. It's not certain advice. Ergo, investors and traders should do their own research before putting their money on XRP.
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