Analyst Uses AI To Show How High The XRP Price Will Be If XRP ETFs Are Approved

Crypto analyst Rob Cunningham has used AI to calculate how high the XRP value could possibly be if the XRP ETFs finally launch. Based on the forecast, the altcoin might rally to as high as $50 solely based mostly on inflows into these funds. 

How High The XRP Price Could Rise If XRP ETFs Are Approved

In an X post, Rob predicted that the XRP price might rally to $50 within the excessive stress case based mostly on the inflows into the XRP ETFs. He additionally talked about {that a} conservative goal can be between $8 and $12 inside 12 months, whereas an “aggressive however believable” goal can be between $20 and $30.  

He revealed that these targets had been based mostly on ChatGPT’s forecast of how high the XRP value might rise solely on $17 billion in new ETF purchase demand over the following 12 months. The analyst broke down the framework with which this calculation was made. First, he famous that the float accessible is 5 billion XRP whereas the influx assumption is $17 billion over 12 months. 

Furthermore, the beginning XRP value is $3, and the whole float market worth is $15 billion. Based on this, Rob remarked that the brand new demand from the ETFs will exceed your complete float’s worth in a single yr. He additional defined that if a purchaser commits $17 billion (the XRP ETFs on this case) to purchasing XRP at $3, then they may buy 5.7 billion cash. Meanwhile, the float is capped at 5 billion, with the scarcity triggering a repricing. 

The analyst added that the value will proceed to rise till the accessible float satisfies the $17 billion demand. This is what led to the conservative goal of $8 to the acute stress case of $50 for the XRP value. Rob said that ETFs don’t simply take up liquidity however that they institutionalize demand. 

With $17 billion dedicated and such a skinny float, the analyst believes that researchers ought to view a double-digit XRP value (between $10 and $30) as a practical equilibrium goal. Rob added that there’s additional upside threat if retail and crypto treasuries refuse to promote. 

Another Parabolic Rally When FOMO Sets In

Rob additionally offered a second state of affairs, during which XRP data a bigger demand as FOMO units in. He believes this FOMO will come from mainstream banks, RIAs, establishments, and retain buyers because the XRP ETFs push the XRP value larger. He famous that the capital base shall be bigger than the $17 billion that ETFs are projected to convey when the broader monetary system joins in. 

These monetary establishments maintain and handle trillions of {dollars} in belongings. As such, Rob predicts that even 0.5% of allocation from these corporations into XRP will dwarf the XRP ETF inflows. He added that $700 billion might move into the altcoin from these establishments, which is method above the float of 5 billion cash. In line with this, the analyst asserted that $8 to $30 is probably going for the XRP value with out FOMO, whereas broad FOMO might result in a rally to as high as $150. Lastly, he remarked {that a} systemic allocation might result in a rally to as high as $500.