TL;DR
- Despite its substantial price surge in the past several months, XRP failed to break its 2018 all-time high but came agonizingly close.
- It has retraced substantially since then, alongside the rest of the market, but ChatGPT believes there are certain factors that could restart its bull run.
What Happened With XRP?
CryptoPotato reported recently that everything seemed to be going in Ripple’s way ever since the US elections in November last year. Trump’s victory meant an upcoming regulatory change, which was particularly important for the company due to its long-standing legal fight against the local securities watchdog.
That lawsuit has effectively ended now, just a few months after Trump’s promised changes came into effect. XRP was name-dropped by the same POTUS to be potentially included in the country’s strategic crypto reserve. There are multiple companies that had filed to launch their own exchange-traded funds tracking XRP’s performance.
More recently, another massive development was announced as the company bought a large prime broker for $1.25 billion, which is set to be a game-changer for Ripple and its cross-border token.
Yet, XRP’s biggest gains came in the months leading to the actual changes, lawsuit closure, and big purchases, which brought speculations on whether that run was just another classic ‘sell-the-news’ event. The asset peaked in January this year at $3.4, thus matching its record from seven years ago. Since then, it has been mostly downhill, and XRP even slipped below the coveted $2 support on several occasions.
Can the Bull Run Start Over?
While analysts have their own view on what can restart XRP’s bull run, we decided to ask ChatGPT for its own take. The AI chatbot outlined the aforementioned Ripple ETFs that have to be approved to impact the asset’s price because they can ‘open the gates to institutional flow, like we saw with Bitcoin.’
Second, ChatGPT listed the dire market conditions as of late. An improvement on that front could propel another price surge for XRP, which outperformed most crypto assets during the November-January run.
The AI machine sees utility growth and adoption for Ripple’s cross-border payment systems, as well as major partnerships, as the next potential reasons that could lead to an XRP price pump.
Whale activity is also important for the price movements of a crypto asset, and ChatGPT noted that many such market participants have disappeared from the XRP landscape as of late. If they return with massive purchases as they did after the elections, the asset could go parabolic once again.
Lastly, the chatbot mentioned that XRP needs to break out of the crucial resistance levels at $2.5 and $3 to aim for a new all-time high.
“A clean breakout from these resistance zones, with volume, could trigger momentum traders and algorithms,” ChatGPT concluded.
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