Grok AI, an artificial intelligence platform, has provided an answer to Digital Asset Investor’s (DAI) query regarding the performance of XRP after Bitcoin halving events. According to Grok AI’s estimation, XRP typically experiences a surge of more than 21% within 120 days following each halving event.
Based on this estimation, XRP could potentially reach $1.06 by August, although this is subject to various factors such as the ongoing litigation with the Securities and Exchange Commission (SEC) and the launch of a stablecoin.
The highly anticipated Bitcoin halving occurred on Friday, April 19, 2024, at around 8:09 p.m. (UTC). ViaBTC mined the 840,000th block on the Bitcoin network, resulting in a reduction of the rate at which new Bitcoins are created every 10 minutes to 3.125. Prior to the halving, market analysts and commentators, including DAI, discussed the price impact of previous halvings. DAI focused on XRP and relied solely on Grok AI’s feedback for analysis.
DAI’s analysis revealed that 120 days after a halving event seems to be the sweet spot for XRP performance. However, this time, the usual patterns may not hold due to factors such as the resolution of the SEC lawsuit, the release of a stablecoin, and the potential implementation of stablecoin legislation.
Grok AI provided insights into the performance of XRP after the past three halvings. For the 2016 halving, XRP was trading at $0.005233. After 30 days, the price surged by 4.85% to reach $0.005487. It further increased by 5.54% after 90 days and by 21.88% after 120 days, trading at $0.0063. However, the price subsequently dropped by 50.72% within a year, briefly finding support around $0.002 before experiencing a bullish reversal that led to an all-time high of $3.4 on January 7, 2018.
In the third halving, which took place in May 2022, XRP saw a surge of 2.2% after 30 days, 0.75% after 90 days, and 21.46% after 120 days. One year after the event, XRP spiked by 521.78% to reach $1.25 from $0.20.
DAI emphasized the consistency of XRP’s attractive price action during the 120-day period, with surges of 21.88% and 21.46% in the second and third halvings, respectively. Based on this pattern, XRP could potentially experience a mini rally and reach $0.6233.
However, analysts believe that the bullish sentiment surrounding the XRP ecosystem could amplify this surge by five times, pushing the price to $1.06 by August 2024. Some commentators even predict more significant increases, with EGRAG estimating $27 for XRP and Leb expecting the asset to reach $3.84 immediately after the halving event.
DAI clarified that the replication of previous price behaviors would depend on several conditions, including the resolution of the SEC vs. Ripple Labs litigation, the successful launch of Ripple’s stablecoin, and the potential introduction of stablecoin legislation by the U.S. Congress.
At the time of writing, XRP was trading at $0.5370, with a 4% increase in the last seven days and a 0.94% increase in the last 24 hours.