After several months of flirting with the psychological support level at $1.00, Ripple’s XRP finally dipped below it on a couple of occasions in the past week, which aligned with many analysts’ expectations for such a move before a major rebound.

However, some of the same analysts have been publishing controversial opinions on where the token’s bottom lies. Consequently, we decided to ask ChatGPT about its take on the matter and whether it believes XRP has finally reached a macro bottom.

In or Not In?

Zooming out, the decline to a 21-month low of just under $1.00 points to a rapidly deteriorating market structure, meaning that XRP has plunged by 70% since its all-time high, which was marked 13 months ago. The positive side is that the token managed to rebound and continues to fight for this psychological support, and has yet to give it up entirely.

ChatGPT’s answer was not as straightforward and hopeful as the bulls might have liked. It noted that there’s a big possibility the bottom could be in or just inches away due to several factors. The first is simply the magnitude and duration of the correction.

The cross-border token has been freefalling for almost a year, producing a succession of lower highs and lower lows. All of its recovery attempts have been halted in its track, and it continues to close in the red monthly, with almost no exceptions.

There are some encouraging signs as well. As reported recently, the number of wallets holding at least a million XRP has increased by 32 over the past three months. Network usage, such as the number of active XRP addresses, jumped from under 24,000 to more than 43,500 within a month or so.

Still Premature

Despite all of the above, ChatGPT remains cautious about concluding that the bottom is in, as it sees another plausible leg down. For instance, XRP’s Taker Buy/Sell Ratio on Binance recently hit a multi-month low of 0.86, showing that there are more aggressive sellers than buyers on the world’s largest exchange.

Rising futures positioning also increases the danger of another move south that can trigger a liquidation cascade. Lastly, the popular AI model outlined other analysts’ observations that the next important area for XRP lies at $0.94-$0.95. A break below that could lead to more profound losses and a dump to $0.80-$0.85.

As such, ChatGPT’s conclusion is that the bottom is ‘possibly’ in. However, there’s no confirmation yet, even though there is a ‘reasonable’ case that the sub-$1.00 dip marked, or came very close to, a local capitulation bottom.

Source: CryptoPotato