The recent sustained rally seen in the price of XRP has many heads turning and many investors wondering if it will manage to hit the long-anticipated $1 by the start of 2024.
In its quest for answers, Finbold decided to consult the algorithms of OpenAi’s ChatGPT.
As is usually the case with the artificial intelligence of ChatGPT, it wasn’t too keen to offer any numbers at first. Instead, it laid out the major factors that could drive the price of XRP until January 1, 2024.
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Indeed, while it is still generally expected that the final resolution of Ripple’s legal battle with the Securities and Exchange Commission (SEC) is far away, any updates – including a possible settlement – could have a strong effect on the price of XRP. This was best seen in the wake of Judge Torres’ favorable ruling in July when it briefly rose above $0.82.
Additionally, investor sentiment might prove even more decisive with regard to the price of XRP. Not only has the recent rally sparked enthusiasm for the market, but Ripple’s relentless global expansion, combined with its victories over the SEC, reignited the debate on whether the firm is preparing for an initial public offering (IPO).
ChatGPT offers a bull, bear, and stable scenario
When asked about possible scenarios based on the factors it laid out, ChatGPT offered three likely paths forward. In the optimistic scenario, the AI assumed that the SEC case would be resolved before the year is out and that the current crypto market rally would continue.
ChatGPT even hinted that under these circumstances, XRP might even test its historic highs of $3.84 though it did not offer the value in its estimates for the January 1 range.
The pessimistic scenario focuses on the fact that Ripple’s legal battle is far from over. According to the AI, this paired with other, more general macroeconomic factors, might cause the rally to run out of steam and lead to XRP retracing to levels seen between late August and late October.
The stable scenario similarly highlights the leftover legal uncertainty but assumes that the investor sentiment will not sour, leading to sideways trading instead of retracing.
When pressed to make an estimate of which of the scenarios for the cryptocurrency for January 1 is the most likely, as well as provide a price range, the AI proved rather optimistic.
According to ChatGPT, the neutral scenario, which would see XRP rise to the range of $0.85 to $1.15, is the most likely. Furthermore, even the pessimistic scenario sees only a modest retracement, even in the worst case, as it predicts that the token could stand between $0.65 and $0.85.
Finally, the optimistic variant places XRP squarely above the $1 mark on January 1, 2024, and in the range between $1.15 and $1.35.
XRP price analysis
Whatever January 1, 2024, may hold, XRP has been doing rather well over the previous weeks. At the time of publication, it stands at $0.68 having declined 1.43% over the previous 24 hours.
Despite the slight downtrend, the token is significantly in the green over the previous month, having risen more than 31% even recently surging to its 3-month high.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
