3 Ways You Can Use ChatGPT to Find the Perfect Ripple (XRP) Entry

XRP has been trading all high and mighty over the past week, adding more than 32.5% to its price in the interim. It achieved a brand new all-time high and it appears that it’s riding on the momentum of becoming the 3rd-largest cryptocurrency by means of total market cap, at least at the time of this writing.

But while these conditions might be excellent for those who have built up their positions, users looking to get into it might struggle to identify appropriate entry points.

Now, this article is in no way a financial advice, but we thought it might be interesting to explore how we can leverage ChatGPT’s analytics capabilities to identify a potentially good entry for XRP in current price conditions.

Below are three ways you can use it to, at the very least, get some supplemental information that might help you form your investment thesis. Of course, this should only be used in addition to your own research – make sure to do it and never trust an AI in its entirety.

Assistance with Technical Analysis

Whether you believe technical analysis works or not, many traders use it to gauge the effectiveness of an entry and to also identify potential exits. In general, it remains one of the most common practices for crafting strategies.

You can upload a chart to ChatGPT and use it to interpret technical indicators such as:

• Moving averages
• Relative strengh index
• Support and resistance levels, and much more.

Let’s check out an example. We have uploaded the following chart:

We also inserted the following prompt. Note how we start with a prompt to identify the current price – we want to make sure that ChatGPT reads the chart properly:

The AI then returned the following answer to our first two questions:

As you can see, it provided a correct answer to the first question and then provided the main support and resistance levels with certain argumentation for it. The previous all-time high is not flagged as a support because the price is hovering above it and it’s still uncertain as to whether it has been flipped as support or not – the bot needs further confirmation, perhaps in the form of a few consecutive daily candle closes above it.

In terms of resistance, because XRP is in price discovery, ChatGPT correctly assumed that there is “no clear historical resistance beyond this on the provided chart.”

The more interesting part is to see what types of entries it has provided. This is what it returned as an answer to the third question:

Now, whether or not this fits your trading style is an entirely different question, but you can modify the prompts to be more precise and tailored to your particular strategy. In addition, you can also feed it with more information so that it also takes some fundamentals into consideration, which brings us to point number two.

Sentiment Aggregation from news and Social Media

ChatGPT can easily summarize recent sentiment surrounding XRP by scanning news headlines, interpreting Reddit or Twitter posts, flagging major developments, and so forth.

However, the caveat here is that if you’re not that tech-savvy and can’t build some sort of an automation, you will have to manually feed the bot with the headlines and materials you want it to summarize and interpret.

Fortunately, there are plenty of aggregation resources out there that you can use to quickly compile headlines from the past 24 hours or from the past week, for instance, and then feed them into ChatGPT for it to work with.

As a bonus tip here: consider giving ChatGPT a certain role. Instead of just prompting it with a simple task such as “summarize these articles,” you can go a lot more in-depth. A more professional-looking prompt could be something like:

Respond as if you are a professional swing trader with a focus on cryptocurrencies. Analyze the contents of the following URLs in depth and provide answers to the following queries:

1. What is the ongoing trading sentiment surrounding XRP.
2. What is the broader market sentiment based off the URLs I’ve provided.
3. How does question 2 reflect on the answers in question 1.
4. Take into account the trading chart that I’ve uploaded and improve your answers with the fundamental context you gather from the URLs.
5. Craft a new trading strategy with clear entry and exits for different time frames, to fit different risk profiles.

Macro and On-Chain Data Interpretation

Just as it can read trading charts, ChatGPT can also read on-chain graphs that provide contextual information for a certain coin based on its technical fundamentals.

For instnace, the flow in and out of exchanges can be a critical parameter to gauge investor sentiment – increased exchange inflows could be a sign of an incoming selling pressure, while outflows typical signal stronger underlying spot market conditions.

Therefore, make sure to also use this to your ChatGPT-provided analysis for a fuller breakdown and a more cohesive strategy.

Having said all of the above, I would like to reiterate that none of it is financial advice. You should always conduct your own research. Tools such as ChatGPT (or other AI-based agents) can be used to your advantage but always approach them with a grain of salt and verify the information they provide.