How High Can Ripple Price Go If SEC Approves XRP ETF? (ChatGPT speculates)

TL;DR

An ETF approval could fuel a triple-digit XRP rally in the medium term (according to ChatGPT). Despite the positive outlook, there is a risk of a “Buy the rumor, sell the news” effect, where prices fall after the possible green light. Possible target prices

Since the launch of exchange-traded funds (ETFs) in the US that track the performance of Bitcoin (in January 2024) and Ethereum (July 2024), industry participants have been wondering what comes next.

Lately, there have been some hints that an XRP ETF could go live in the near future. Bitwise registered this investment vehicle in Delaware in early October, while Canary Capital followed suit days later. The former has yet to submit the ETF to the US SEC (the agency that decides whether these funds will be approved), while the latter has already done so.

The Commission has been at legal war with Ripple for nearly four years, which means a green light could be quite difficult. However, a possible settlement is not completely out of the cards and could significantly increase the price of XRP. We decided to ask ChatGPT to specify exactly how high the rating could jump if this were the case.

The AI-powered chatbot estimated that the price of the token could rise to $1.50 within months of approval. However, this exponential increase would depend on other elements such as increased institutional investment, wider market adoption and more.

ChatGPT went even further, predicting that the possible green light of an XRP ETF combined with a favorable resolution of the Ripple lawsuit against the SEC could push the value of the asset above $2.50 in the medium term.

The case has recently witnessed some key developments. As CryptoPotato reported, the regulator appealed a 2023 verdict handed down by federal judge Torres, who ruled that secondary sales of Ripple’s XRP token did not constitute sales of securities.

Before the dispute, the magistrate ordered the company to pay a penalty of $125 million for violating certain securities laws, an amount that represents only a fraction of the $2 billion that the SEC initially requested.

Watch out for the Sell News effect

Conversely, ChatGPT warned investors that XRP’s value may go south even if the ETF that tracks the asset’s performance is approved due to some behavioral factors.

An example is the “Buy the Rumor, Sell the News” phenomenon, in which prices rise in anticipation of a positive event and then plummet after an official announcement.

“While an ETF approval generally indicates a positive outlook for an asset, XRP’s reaction will largely depend on timing, market sentiment and investor behavior. If many traders are already positioned for a bullish outcome , a price drop is possible due to profit taking and unmet expectations,” the chatbot stated.

A classic “sell the news” event took place earlier this year. The price of BTC rose gradually for months in anticipation of the approval of the first Bitcoin ETF on the site in America. Shortly after the launch, however, the asset made a U-turn, erasing much of the gains.

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