The price moves from precisely a month ago could hardly have anticipated what happened in the following 30 days. XRP, for example, skyrocketed by 30% at the time to $2.40 amid growing ETF inflows.
The subsequent rejection and correction, though, were brutal. After several consecutive leg downs, the culmination, at least for now, transpired earlier today when it plunged below $1.40 and now struggles at $1.35. As such, we decided to revisit a painful question for ChatGPT.
Below $1 Now?
CryptoPotato first asked this question over the weekend when the landscape around Ripple and its native token was not as grim. XRP traded at around $1.60 after its most recent crash, but it seemed as if it had bottomed. Perhaps that’s why most AIs agreed that the chances for a drop beneath $1.00 in February were quite slim at the time.
However, that perceived bottom gave in during the current trading week, as mentioned above. Consequently, we asked ChatGPT whether its view on the matter will change now.
The AI’s short answer was yes, as the probability of such a drop is “meaningfully higher now than it was when XRP was at $1.60-$1.70.” At the time, the token still traded above major structural support, and the broader market hadn’t rolled over so decisively. There was no confirmed breakdown of higher-timeframe levels, and the sentiment wasn’t entirely bearish.
A lot changed in the following several days, though. Momentum has accelerated to the downside as XRP sold off aggressively, “slicing through intermediate supports and failing to hold rebounds.” Additionally, February has just started, and there’s too much time for such a drop to occur if the overall conditions do not improve rapidly.
Dip or Breakdown?
Given the current circumstances, ChatGPT believes that the probability of XRP remaining above $1.00 in February is around 40%. It expects that there will be some consolidation and choppy trading after such heightened volatility and declines.
However, it also noted that there’s a 35-40% chance of a liquidity sweep to just under $1.00 in the next few weeks. It would be prompted by a fast sell-off, resulting in a panic wick, before a sharp rebound. This scenario, it added now, has become “very real.”
It still dismissed the possibility of a full-on breakdown below $1.00, saying the percentages are around 15-20% now. Although this scenario appears least likely for ChatGPT, it still acknowledged that it had gone from negligible (over the weekend) to quite possible (now).
The post Will XRP Plunge Below $1 in February? ChatGPT Reassesses After Ripple’s Crash appeared first on CryptoPotato.