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Here Are Potential XRP Price Targets After Spot ETF Approval

source-logo  thecryptobasic.com 23 May 2024 10:35, UTC

Recently, we asked ChatGPT to suggest the potential market value of XRP in a scenario where the asset gets a spot exchange-traded fund (ETF) like Bitcoin.

Initially, the AI system acknowledged the challenge of predicting the precise valuation of XRP with the emergence of ETFs. Nonetheless, ChatGPT drew upon Bitcoin’s historical data post-ETF approval to provide an informed projection for XRP’s potential market value.

Bitcoin Historical Data post-ETF

Notably, Bitcoin traded at a low of $44,483 on January 10 when the U.S. regulator assented to the inaugural spot crypto ETFs. Precisely two months later, Bitcoin broke the $73,750 all-time high. Overall, BTC printed a return of approximately 66% in about 63% after ETF approvals.

The Hypothetical Case with XRP

Given XRP’s present value at $0.5289, ChatGPT envisioned a situation in which an XRP ETF might have a percentage influence on its price similar to that of Bitcoin’s ETF.

In particular, a 66% increase from XRP’s current price would raise the seventh-ranked cryptocurrency’s value to approximately $0.878. Accordingly, the AI system deduced that XRP’s price might ascend to an estimated $0.878, mirroring the 63-day trajectory post-ETF approval witnessed with Bitcoin.

However, while a 66% rally was enough for Bitcoin to set a new all-time high, a similar percentage growth has less consequential impact on an altcoin like XRP. Specifically, the $0.878 price level still puts XRP 77% away from its old ATH of $3.84.

With altcoin known to outperform Bitcoin, it may be expected that XRP would register a more substantial percentage growth with ETFs than the 66% BTC attained.

Meanwhile, ChatGPT highlighted various factors, such as market conditions, investor behavior, and regulations, as potential catalysts for higher price levels. It cited the crucial role of overall market sentiment at the time of approval.

This is observable in the case of Bitcoin: the approval of the Bitcoin spot ETFs occurred during a bull market rather than a bear market.

“Realistic” Price Range for XRP

When asked about XRP’s potential to surpass the $1 threshold ETF following approvals, ChatGPT concurred. It noted factors such as ETFs driving increased demand for XRP and higher liquidity with greater trading volumes.

Additionally, it mentioned the likelihood of market hype and a fear of missing out (FOMO) frenzy driving XRP’s price significantly higher than anticipated. Ultimately, ChatGPT concluded that XRP’s realistic price range following ETF approval is between $0.83 and $1.2.

XRP ETF Prospects

Meanwhile, it is worth noting that the prospect of an XRP ETF coming to fruition still hangs in the balance, as no asset manager has filed for it despite XRP’s clear regulatory status in the U.S.

Nonetheless, market participants eagerly await this development. Furthermore, pundits argue that the U.S. SEC’s approval of Ethereum spot ETFs would pave the way for other crypto asset ETFs like XRP.