After consolidating within a flat range for years, XRP finally broke through barriers to surge to heights not reached in about six years. Precisely, XRP jumped from a yearly low of $0.5 to a high of $2.9, posting more than 400% gain in less than a month.
Even though its price has seen heavy retracement, investors are still very much bullish about its trajectory. At the time of writing, XRP traded at $2.42, representing a 20% increase in the last 24 hours. The recent spike, triggered by the news of Ripple’s stablecoin approval, has renewed investors’ confidence as several on-chain metrics suggest increasing market activities.
Source: CoinMarketCap
At this time, XRP is positioned as the fourth-largest cryptocurrency, after Bitcoin (BTC), Ethereum (ETH), and USDT stablecoin. While other analysts have forecasted different values for XRP for the end of the year, we asked the OpenAI tool, ChatGPT to give us a prediction for the Ripple-backed coin.
Read Also: Why RLUSD Matters for Ripple and the Future of Finance
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Factors Affecting XRP’s Trajectory
ChatGPT noted that XRP’s trajectory is dependent on several factors. The artificial intelligence tool outlined four factors that could boost XRP’s value. First, ChatGPT pointed to the recent approval of Ripple’s RLUSD stablecoin by the New York State Department of Financial Services (NYDFS) as the most important factor.
Ripple CEO, Brad Garlinghouse, announced earlier today that his company has secured the much-needed regulatory nod and that RLUSD will be publicly launched soon. To put RLUSD’s effect in perspective, XRP immediately spiked by 8% following the news. This underscores the significant impact the official launch will have on XRP’s future.
Secondly, ChatGPT referenced the anticipated change in the SEC, precisely the replacement of Gary Gensler with a more crypto-friendly figure, Paul Atkins. The crypto community expects that the SEC, under Atkins, will be more favorable to the industry, and likely dismiss the long-running Ripple lawsuit which has suppressed XRP’s price for years.
ChatGPT’s third point revolved around the general market performance. The AI tool noted that the crypto market has performed impressively following Donald Trump’s election victory. Bitcoin, the flagship cryptocurrency crossed the $100k mark against the backdrop of the election result, leading the global market to a $3 trillion valuation.
Finally, ChatGPT emphasized the growing adoption of Ripple technology through collaborations and partnerships with financial institutions. It noted that these collaborations continue to improve XRP’s use case which can transform to long-term growth potential.
Conversely, ChatGPT also outlined some negative factors that could spell trouble for XRP moving forward. The first point is the pending SEC opening brief which is to be filed before January 15. The continuous court process could damage investors’ confidence and potentially halt XRP’s growth.
Another point noted is the visible profit taking by investors. As previously mentioned, XRP rocketed by 400% in one month, therefore, investors are aggressively cashing out already accumulated profits which could increase the selling pressure on the coin, further suppressing its growth.
ChatGPT’s XRP Prediction for December 31
After listing all the possible catalysts and impediments for XRP, ChatGPT went on to give two price ranges for the coin. As per its prediction, if the positive factors dominate the market, then XRP could see an upside of over 60%, rising as high as $3.8 by December 31. This means that XRP could reach and break its all-time high, a sentiment shared by several top crypto analysts.
However, if the negative factors prove dominant, XRP could see a significant decline below $2, a point that experts predict could trigger a larger slide to previous lows.
Read Also: XRP and Dogecoin Indicate Long-Term Strength Despite Market Fluctuations
Source: ChatGPT
Interestingly, ChatGPT’s prediction aligns with that of prominent analysts in the market. Bitboy Crypto, recently made a post on X, opining that XRP is on the verge of rocketing to $4.5 by the end of December or in January 2025.
Additionally, Ali Martinez (Ali Charts) demonstrated that XRP’s slump to $2.2 might just be the right time to buy the coin as it prepares to rally to new highs of $4.4. Ali Martinez’s analysis is based on the formation of 3 consecutive bullish pennant patterns.
Source: Ali Charts/X
XRP’s recent breakout from years of stagnation, surging by over 400% in a month, highlights its potential amidst renewed investor confidence following regulatory milestones like Ripple’s RLUSD stablecoin approval.
While bullish factors such as SEC leadership changes, broader crypto market momentum, and Ripple’s growing adoption could drive XRP to new highs, risks like ongoing legal uncertainty and profit-taking could temper its trajectory.
Read Also: XRP Price Prediction: XRP Targets $4.40 After Bullish Pennants Formation
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications such as Coinfomania and Crypto News Guru, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.