Bitcoin (BTC) is seeking to extend its impressive 2024 run into the new year, aiming to reclaim and establish its price above the $100,000 mark.
This potential surge is fueled by industry optimism, with some market players expecting the asset to climb higher, driven by the sustainability of the post-election momentum despite the current short-term volatility.
While Bitcoin leads the charge, several altcoins also show strong potential to rally, possibly even outperforming BTC. With this in mind, Finbold consulted OpenAI’s ChatGPT-4o for insights on which altcoin could take center stage.
Picks for you
XRP
The artificial intelligence (AI) tool highlighted that XRP’s future looks brighter than ever, thanks to recent favorable developments in a legal battle between Ripple and the Securities Exchange Commission (SEC).
The latest updates from the case indicate that the chances of XRP being reclassified as a security have diminished.
Additionally, Gary Gensler’s upcoming exit as the head of the SEC is viewed as a bullish trigger for the asset. There is speculation that the case could be thrown out entirely if crypto-friendly Paul Atkins is confirmed to lead the regulator.
With the new administration set to take over, XRP could rally further, building on its recent breakout amid anticipation of possible approval for a related exchange-traded fund (ETF).
Overall, ChatGPT stressed that positive regulatory outcomes could spark massive institutional adoption, driving the asset’s value upwards.
At the same time, the OpenAI platform noted that Ripple’s established partnerships with financial institutions for cross-border transactions further cement its role as a bridge currency, which could boost demand.
It’s worth noting that XRP is among the standout winners of the current bull market, having broken out of a prolonged consolidation phase below $1.
XRP is exhibiting short-term bearish sentiments aligning with the broader cryptocurrency market. As of press time, XRP was trading at $2.23, reflecting a 1.6% loss on the daily chart and an 8% decline over the past week. Notably, XRP has recorded returns of over 285% in 2024, outperforming Bitcoin’s 115% gain.
From a technical perspective, Dark Defender’s analysis, shared in an X post on December 21, indicated that XRP appears to be repeating a familiar pattern observed on its four-hour chart, but this time on the daily timeframe, signaling a potentially explosive move ahead.
In the past, XRP dropped 21% to $1.0033 before rallying from $1.2680 to $2.9070. The current daily structure mirrors this, with a 34% dip to $1.9010. If XRP breaks above $2.90, targets of $5.85 and $8.76 could follow.
Solana (SOL)
The AI tool selected the decentralized finance asset Solana (SOL) as the second altcoin likely to outperform Bitcoin. ChatGPT-4o cited Solana’s strong fundamentals, such as high speed and low transaction costs, which have the potential to attract more users to the platform.
With a stronger developer activity and a growing ecosystem, Solana is set to benefit as more projects are built on its network.
This aligns with an Electric Capital report that showed Solana surpassed Ethereum (ETH) in new developer growth for the first time since 2016. In 2024, Solana led the blockchain ecosystem with an 83% year-on-year increase in new developers.
As of press time, Solana is trading at $182, having dropped over 2% in the last 24 hours and plunging more than 17% over the past week. Year-to-date, SOL has rallied 80%.
Regarding Solana’s next potential move, prominent on-chain analyst Ali Martinez suggested the asset might be setting up for a rebound.
In an X post on December 21, Martinez observed that the range between $188 and $179 is a critical support level that previously acted as resistance from March to November. This area now serves as a potential launchpad for the next move.
Adding to the bullish outlook, Solana’s Relative Strength Index (RSI) has dropped to 31.72, a point that has historically signaled price rebounds. Meanwhile, the Stochastic RSI is in oversold territory, suggesting SOL could be primed for a reversal.
Despite XRP and Solana’s potential to outperform, their price movements will likely follow Bitcoin’s lead. While both altcoins have strong fundamentals and catalysts, Bitcoin’s performance will remain the primary force shaping the broader crypto market.
Featured image via Shutterstock
