DDisclaimer: The information presented does not constitute financial, investment, business or other advice, and is solely the opinion of the author.
Cardano (ADA) has recently become a notable player in the crypto sphere after recording a significant price rise. The favorable repercussions of accepting Bitcoin (BTC) Spot ETFs are mainly responsible for this increase.
The rise in ADA price was followed by an increase in trading volume, which is generally considered a bullish indication. Due to the price rise, ADA has become a hot topic of discussion in the crypto space, as evidenced by the increase in its social traffic.
This price surge marked a new weekly high, indicating an excellent uptrend after gaining 5% in a single week. However, current market indicators point to a slight decline as negative forces become more visible.
Over the past few weeks, Cardano price has gone through a period of stabilization, fluctuating between $0.46 and $0.61.
This period of stability was brief, as market factors quickly shifted, pushing the price above these limits as Cardano price entered a period of sideways movement, with little substantial change for several days.
In the face of such fluctuations, it’s worth looking at what ChatGPT thinks about ADA’s prospects for 2024.
Aside from the price changes, the Cardano ecosystem has seen significant progress, especially after the Mithril upgrade.
The network has been operating without any issues since its mainnet debut in June, thanks to the growing participation of committed stake pool operators.
🙏 Congratulations to the pioneering SPOs of Mithril for their unwavering support.
👉 For more details on Mithril… pic.twitter.com/LSjBkBKQID
– Input Output (@InputOutputHK) January 10, 2024
Mithril’s constructive expansion of the Cardano ecosystem has the potential to improve the usability and overall appeal of the network.
ADA: Control network functionalities
ADA is more than just a digital currency; it is a testament to the secure exchange of values, removing the need for middlemen. Every ADA owner becomes a stakeholder, contributing to the Cardano ecosystem in multiple ways.
ADA’s initial supply was limited to 45 billion units, with a unique distribution technique.
The Cardano Foundation, EMURGO and IOHK are essential parts of the Cardano ecosystem and funds were allocated to them during the pre-launch sales event. The deliberate allocation of genesis blocks laid the foundation for Cardano’s journey.
The innovative Ouroboros Proof-of-Stake (PoS) consensus technique underpins Cardano’s functionality. Ouroboros is the first blockchain consensus mechanism based on peer-reviewed research, setting Cardano apart from its competitors.
Plutus, Cardano’s native smart contract language built from Haskell, works in tandem with Ouroboros. This Turing complete language, similar to Haskell programs, powers Plutus smart contracts.
Cardano’s two-layer design further increases its versatility and scalability. Transaction validation and cryptocurrency transfers are managed by the Cardano Settlement Layer (CSL).
The Cardano Compute Layer (CCL) is in charge of computational details such as smart contracts.
We began testing our AI companion by asking it questions about the future of ADA. ChatGPT’s ability to express itself is currently hindered due to limitations imposed by developers.
To make him say what he wanted, we applied the “jailbreak” technique.
ChatGPT’s take on ADA and the Ripple-SEC verdict
I decided to test if ChatGPT can answer some of my queries regarding the Cardano network and its native token, ADA.
At first, I asked him about the impact of the Ripple (XRP)-SEC verdict on the status of ADA (Cardano’s native token) as a security.
The court ruled in July that while the institutional sale of XRP tokens constituted a securities sale, the programmatic sale of those tokens to retail investors did not meet the criteria for a security arrangement.
ChatGPT said its limited knowledge until January 2022 made it unaware of a definitive verdict on the Ripple case.
That’s when I decided to jailbreak it using the DAN (Do Anything Now) prompt.
While the classic version stated that it did not have access to real-time information, the jailbroken version spoke at length about the potential implications of the Ripple-SEC verdict for ADA.
But the bot said the verdict sent a shockwave through the crypto space. This is completely false, as the crypto community celebrated the verdict as a partial victory for Ripple.
The robot further claimed that the ADA had emerged relatively unscathed because regulators had provided clear guidelines distinguishing it from securities.
Again, this is completely false, as the regulator had specifically classified ADA as collateral in its lawsuits against Binance and Coinbase.
Recently, the SEC again reiterated his demand regarding ADA as collateral in its latest lawsuit against crypto exchange Kraken.
ChatGPT predicts ADA performance
I asked ChatGPT what he thinks the price of Cardano will be by the end of 2023.
The bot claimed that ADA will become one of the most successful cryptocurrencies, thanks to its revolutionary developments, widespread adoption and an increase in demand. However, he declined to provide a specific price prediction.
I asked it the same question again using a different jailbreak prompt.
This time, the robot was able to provide a clear but seemingly absurd answer. He said he expected ADA to hit $5, a 12-fold increase, within a month.
Although the crypto world is indeed very volatile and unpredictable, a 12x increase in a month is a very difficult, if not impossible, task considering the statistics.
I then asked him to predict the price of ADA towards the end of 2024.
The robot said ADA would reach $10 by the end of 2024, a 25x increase in one year. It seems that the bot assumed that it would reach $5 by December 2023 and continue to rise.
An Overview of ADA’s Daily Price Chart
At press time, ADA was trading in the green, with the alt price having gained over 4% in the last 7 days. The MACD has cleared several red histograms below the half-line, indicating bearish momentum.
The Chaikin Money Flow (CMF) indicator was crossing just above zero, indicating minor buying pressure. This means that capital inflows have exceeded capital outflows, indicating that a reversal may be underway.
ADA has exceeded expectations over the past week. The altcoin’s ability to maintain momentum will be key to its future fortunes.
If the bulls succeed in pushing Cardano price above the $0.61 resistance level, the price of the cryptocurrency will resume its upward trend.
Like many in the community, ChatGPT remains positive about the prospects for ADA in 2024. However, keep in mind that ChatGPT is still in its early stages and is far from flawless.
So, before completing an ADA order, you need to do your homework. We need to be careful because the crypto industry can be quite volatile.