Connect with us
Active Currencies 15152
Market Cap $2,583,199,094,777.30
Bitcoin Share 57.05%
24h Market Cap Change $6.45

ChatGPT thinks $8 is a realistic target for XRP in 2024

8min Read

The last few months have been good for Ripple and XRP. What does the AI bot think though?

ChatGPT thinks $8 is a realistic target for XRP in 2024

Share this article

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

After securing a partial victory in its legal case against the U.S. Securities and Exchange Commission (SEC), Ripple [XRP] quickly gained the trust of the crypto-community and the wider financial community.

Hopes are high that a lot of exchanges will now re-list the altcoin.

The partial victory in the court case, coupled with the larger market’s performance, pushed XRP to a local high a few weeks ago. However, it wasn’t to last.

SEC-Ripple saga: How it began

Ripple has been at loggerheads with the U.S. Securities and Exchange Commission (SEC) for years now.

It was in December 2020 that the SEC charged Ripple with raising more than $1.3 billion in 2013 by selling XRP as an unregistered security offering to investors. Ripple, in response, argued in court that XRP could not be treated as security.

The U.S. District Court of the Southern District of New York became the battleground for this legendary crypto case over time.

The SEC claimed that Ripple’s platform used XRP tokens to fund itself, which facilitated money transfers for retailers. The sales of XRP tokens also enriched the platform’s management.

The SEC also relied on the SEC vs. W.J. Howey Co. case to make its case. A landmark Supreme Court case in 1946, it has become the benchmark to determine whether a transaction falls within the Securities Act of 1933’s definition of an investment contract.

According to the Howey test, the investor’s control over the profit is crucial in deciding whether an investment contract is a security or not. If the investors do not influence the asset, it is usually considered a security.

Ripple argued the SEC neither warned nor notified the organization. The regulator also accepted that Ripple wasn’t notified that XRP could be classified as a security.

The regulator’s enforcement action naturally harmed the token, as multiple exchanges suspended XRP trades on their platforms. Between 2021-23, the fortunes of XRP remained dull due to the negativity surrounding the token.

Court delivers a partial judgment

In July 2023, the judge ruled that the sale of XRP tokens to retail investors over exchanges and through programmatic sales did not constitute investment contracts; hence, it was not a security in this case.

However, the court also ruled that the institutional sale of the XRP tokens violated federal securities laws. Therefore, it should be treated as security in this case.

The court also remarked that Ripple actively targeted institutional investors with its marketing, highlighting that the business endorsed a speculative value thesis for XRP.

The court concluded that $728.9 million in XRP sales made by the exchange constituted unregistered sales of securities, giving the SEC a partial victory.

The impact of these judgments was assessed by ChatGPT in a previous article by AMBCrypto. XRP immediately surged by 90% to $0.908 after this partial victory for Ripple.

In late July, Ripple issued its Q2 2023 market report, in which it gave an in-depth response to the partial win. The report claimed the SEC’s lawsuit against the exchange was misguided and a “quest for political power.”

In early August, the court issued a pre-trial scheduling order. The order stated,

The Court will seek to schedule a jury trial for the second calendar quarter of 2024.

But things didn’t end at this point. The SEC remained adamant in pursuing the case further, and Ripple didn’t want to let go of it either.

In October, the court denied the SEC’s bid to appeal against the judgment in favor of Ripple.

Then, it came to light that the regulator was demanding a huge settlement of $770 million from the company. The SEC alleged violations of Federal Securities Laws on the part of Ripple in its institutional sales of XRP tokens.

Then, the figure came down to $20 million. It prompted pro-Ripple crypto-attorney John Deaton to claim that the case’s outcome leaned heavily in Ripple’s favor, presenting a striking 90/10 advantage.

He refuted the larger claim that viewed the court’s partial judgment as a 50-50 victory for Ripple.

Ripple CEO Brad Garlinghouse recently hinted during an interview that he was determined to see the legal battle through to its conclusion. He expressed his readiness to take the matter to the highest court.

Let us now dig deeper as to how it has been trading in the market amid the bull run and how the case affects its performance.

The AI solution offered by ChatGPT can certainly be used to attain some clarity. Let’s see what it says about the case and its impact on XRP’s price trends.

ChatGPT deciphers some fundamental questions

Note that ChatGPT has limited access to information until 2021 only. That makes it difficult to pull data beyond 2021, let alone make future predictions—something that OpenAI’s policy firmly prohibits.

Ergo, we followed ChatGPT jailbreak techniques to bypass some of these limitations to try to get modest XRP price predictions.

We asked ChatGPT about the possibly negative impact of Ripple’s TradFi past on the broader crypto sector.

Source: ChatGPT

The classic version mentioned the criticism of the centralized nature of Ripple that didn’t align with the core principle of cryptocurrencies, i.e., decentralization. However, the bot termed these critics as “cryptocurrency purists.”

It further claimed that Ripple’s association with TradFi institutions and its engagement with the question of regulation have brought a level of “legitimacy” to crypto.

The jailbroken version also responded along the same lines. It said Ripple’s TradFi background bridged the legacy finance world and the latest crypto-realm.

It also claimed that many saw it as a pragmatic approach to navigating the complex regulatory landscape.

We then asked ChatGPT how it sees the Ripple-SEC court case evolving in the future as it reaches the highest court.

chatgpt xrp

Source: ChatGPT

While the bot asked us to hold onto the hope, it didn’t comment on the future outcome. However, it talked at large about the implications of a positive outcome for Ripple.

In that case, XRP would soar to new heights and would be embraced by the global financial ecosystem, ChatGPT added.

Now we know the fundamental analysis and market sentiment, especially from the lawsuit angle. Let us see if it can predict XRP’s future performance.

Would ChatGPT be helpful on this front too? Let’s see.

ChatGPT predicts the price of XRP

We asked ChatGPT to predict the price of XRP towards the end of the year.

At first, the bot didn’t respond, as it didn’t have access to any real-time data. Then, we decided to jailbreak it. The jailbroken version predicted XRP’s price to reach $3 by the end of 2023.

We thought about providing the bot with more context about the court judgment and the ongoing bull run for it to make a more judicious prediction.

The details humbled ChatGPT as it now predicted a more modest price for XRP by the end of 2023, i.e., $2.50.

We then asked the bot what price XRP will reach towards the end of 2024 if it successfully reaches the price of $2.50 by the end of 2023.

ChatGPT expected XRP to reach an average price of $5 by the end of 2024 if it meets the $2.5 mark by the end of 2023. But the token would need to keep riding the waves of positive developments, regulatory clarity, and market enthusiasm.

Though ChatGPT is limited in its data knowledge, circumventing its limitations does not ensure reliable output. However, we attempted this and were moderately successful in achieving price predictions.

As a result, human involvement is critical in making sense of some AI model data.

Looking at XRP’s on-chart indicators

XRP has appreciated significantly since the bull rally in October, hiking by over 30% on the charts. While it hit a local peak around the 7th of November, the crypto has since fallen significantly.

In fact, at the time of writing, XRP was trading at $0.609.

XRP price

Source: XRP/USD, TradingView

The bearishness of the crypto market was highlighted by the findings of the technical indicators.

For example, while the Parabolic SAR’s dotted markers were well below the price candles, the MACD line had crossed over under the Signal line—a bearish sign.

Conclusion

ChatGPT first said XRP’s price could rise to $2.5 by the end of 2023. It expected it to rise nearly 4x by the end of the year. However, that’s not even half of it, with the AI bot predicting the altcoin will hit an $8 target by the end of next year.


Is your portfolio green? Check out the XRP Profit Calculator


ChatGPT can help us analyze movements and predict price trends. However, traders should be careful and conduct their independent research before investing in any asset.

DYOR is the rule for a volatile market, and traders should conduct thorough, independent research before investing in anything.

Share

AMBCrypto Team is constituted by a vastly experienced team of professional journalists and analysts. Each one of us is driven to deliver the most important, the most insightful stories and analyses of the day. Whether you're a casual enthusiast or a trader or an investor, we make sure you get the most objective, accurate, and time-sensitive story at your fingertips.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.