The cryptocurrency market experienced another significant price correction in the past few days, with Bitcoin (BTC) dropping to a six-month low, and many altcoins followed suit.
Ripple's native cross-border token, XRP, was also affected, though its losses were more modest. While XRP is also in the red weekly, its performance might have been partly cushioned by the recent hype surrounding the launch of the spot XRP ETF in the US by Canary Capital. The market now looks towards the upcoming week to gauge the potential recovery after the recent widespread price drops.
Market Dynamics and XRP's Performance
The initial weeks of November have been marked by considerable volatility for XRP. The asset had reached highs of just over $2.55 on several occasions, with the most recent peak occurring on November 11. However, this momentum was not sustained, and XRP fell below $2.20 on Friday amidst a broader market downturn.
An attempt to recover stalled at the $2.30 mark. In light of these developments, an analysis was sought from ChatGPT regarding the potential future outlook for XRP. The AI highlighted the successful launch of the first spot XRP ETF, which offers 100% exposure to the asset, and noted that such product launches often lead to "sell-the-news" events.
Consequently, a price decline in the underlying asset following the XRPC ETF's debut on US markets was not unexpected. Despite this, the AI believes the ETF is a fundamentally positive development for Ripple's token and could contribute to price stabilization by establishing a short-term floor between $2.10 and $2.20, provided it attracts substantial Assets Under Management (AUM) in its initial trading sessions.
Technical Analysis and Price Targets
From a technical perspective, the AI solution indicated that XRP's initial significant resistance level is positioned between $2.35 and $2.40. A break above this range could lead to the next resistance at $2.50, followed by $2.70-$2.80, before a potential push towards the psychologically important $3.00 level. Conversely, if the aforementioned support at $2.20 fails, XRP could see its price decline further, with $2.00 serving as a potential halt to the downward trend.
Bearish vs. Bullish Scenarios
OpenAI's AI model also presented more specific predictions for the upcoming seven days, outlining both a bullish and a bearish case. In the bull case, XRP could reach a peak of $2.70, assuming an improvement in overall market conditions. The bear scenario, however, envisions the asset potentially dropping as low as $1.90.
ChatGPT indicated that both of these scenarios are less probable. The AI suggested that the base case for XRP is to remain within a consolidation phase, trading between $2.15 and $2.45.
"Overall, the next week could serve as an early test of real investor demand for the new ETF. While it may not instantly trigger a sharp recovery, consistent inflows and a steadier macro backdrop could help XRP consolidate above $2.20 and set up for a gradual rebound heading into mid-November."