The crypto market is experiencing a slight downturn, seeing a decrease of approximately $150 billion from its high of nearly $3.3 trillion earlier in the week. Ripple’s XRP token is not immune to this trend, having fallen to the critical support level of $2.00, which has supported its price over recent weeks.

Considering the current bearish momentum, we consulted ChatGPT for its analysis regarding the potential developments for XRP in the week ahead and whether it will maintain its standing above $2.00 or if this support will eventually fail.

Warning Signs

ChatGPT emphasized the importance of the $2.00 support, highlighting that slipping below it might lead to a retreat towards the next significant line of defense at $1.90. This shift appears plausible given the observed drop in trading volume and recent actions by larger market players. Notably, these traders commenced a considerable sell-off in October that has escalated, recently offloading 150 million XRP within two days.

Moreover, ChatGPT pointed to BTC dominance, which could adversely affect larger-cap altcoins if it persists. While BTC dominance dropped to below 56% a few months prior, it remains strong at over 57% at the time of writing.

The Bull Case

On the brighter side, technical indicators like the RSI and MACD suggest that XRP may currently be in an oversold state, which sometimes leads to a price bounce. However, ChatGPT cautioned that the overall structure remains delicate, with a possible repeat of the mid-week jump to $2.20 followed by a correction back to just above $2.00.

The sentiment for XRP could turn optimistic if ETF inflows return to previous highs experienced shortly after their launch, although the increasing demand has waned, evident from the declining inflows over the last five days.

Additional Reading:

• XRP Social Metrics Hit October Lows: Why Is That Bullish for Ripple’s Price?
• Ripple’s (XRP) Impressive ETF Streak Continues as Total Inflows Near $900M
• XRP Holders Gain New Yield Opportunities as Firelight Protocol Debuts

XRP ETF Inflows Dec 6
XRP ETF Inflows Dec 6. Source: SoSoValue

In conclusion, while XRP might be poised to benefit from a market-wide rally in the coming week, ChatGPT predicts it will likely move sideways within the price range of $1.98 to $2.12. For a bullish scenario, a rise to $2.25 was indicated as the target, which would necessitate a robust bounce from $2.00 along with significant ETF inflows.