Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice, and is solely the writer’s opinion.
Cardano [ADA] saw a 4.82% drop in its price in the last week of trading, changing hands at $0.5165 at press time.
While there has been a massive surge in its development activity over the past few weeks, it has not aided in pushing the coin to bullish momentum.
Cardano saw the highest number of code commits in the last year, which was more than Polkadot [DOT], Ethereum [ETH], and the Binance [BNB] network.
While the network has an impressive roadmap and targets for 2024, the current price drop could be a minor hiccup in its grand scheme of things.
Under such fluctuations, it’s worth looking at what ChatGPT thinks about ADA’s prospects for 2024.
Cardano’s network expansion
Besides price changes, Cardano’s ecosystem experienced significant advancements, especially once Mithril was upgraded.
The network has continuously run without any problems since its mainnet debut in June, thanks to the increasing participation of committed Stake Pool Operators.
Since its mainnet launch in June, the #Mithril protocol has maintained uninterrupted operation, thanks to the increasing participation of dedicated Stake Pool Operators (#SPOs).
🙏 Kudos to Mithril pioneer SPOs for their unwavering support.
👉 For more details on the 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 network’s usability and general appeal.
ADA: More than just a digital currency
ADA is more than just a digital currency; it is a testimonial to the secure exchange of value, removing the need for middlemen. Every ADA owner becomes a stakeholder, contributing to the Cardano ecosystem in a multitude of ways.
The initial ADA supply was limited to 45 billion units, with a one-of-a-kind distribution technique.
The Cardano Foundation, EMURGO, and IOHK are critical components of the Cardano ecosystem, and they were allotted funds during the pre-launch sales event. The deliberate allocation of genesis blocks laid the groundwork 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, distinguishing Cardano 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 increases its versatility and scalability even more. Transaction validation and cryptocurrency transfers are handled by the Cardano Settlement Layer (CSL).
The Cardano Computation Layer (CCL) is in charge of computational details such as smart contracts.
We started putting our AI companion to the test by asking it questions about ADA’s future. ChatGPT’s ability to express itself is presently hindered due to limits imposed by the developers.
To get it to say what it wanted, we applied the “jailbreak” technique.
What does ChatGPT say about ADA and the SEC-Ripple 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 it about the impact of the Ripple [XRP]-SEC verdict on the status of ADA (Cardano’s native token) as a security.
The court had given a ruling in July that while the institutional sale of XRP tokens constituted a sale of securities, the programmatic sale of those tokens to retail investors didn’t meet the criteria of being a security agreement.
ChatGPT said its limited knowledge until January 2022 made it unaware of a definitive verdict on the Ripple case.
It was at this point that I decided to jailbreak it using the DAN (Do Anything Now) prompt.
Source: ChatGPT
While the classic version said it didn’t have access to real-time information, the jailbroken version talked at length about the potential implications of the Ripple-SEC verdict for ADA.
But the bot said the verdict sent shockwaves through the crypto space. This is completely untrue, as the crypto community celebrated the verdict as a partial victory for Ripple.
The bot further claimed that ADA emerged relatively unscathed, as regulators provided clear guidelines distinguishing it from securities.
This again is completely false, as the regulating body had specifically classified ADA as a security in its lawsuits against Binance and Coinbase.
Recently, the SEC again reiterated its claim regarding ADA being a security in its latest lawsuit against the Kraken crypto exchange.
ChatGPT’s take on ADA’s future
I asked ChatGPT what it thought the price of Cardano would be by the end of 2023.
Source: ChatGPT
The bot claimed that ADA will become one of the top-performing cryptocurrencies, thanks to its groundbreaking developments, widespread adoption, and a surge in demand. However, it refused to provide a specific price prediction.
I again asked it the same question using a different jailbreak prompt.
Source: ChatGPT
This time, the bot was able to provide a clear answer but, seemingly, a preposterous one. It said it expected ADA to rise to $5—a 12x surge, within a month.
Though the world of crypto is indeed very volatile and unpredictable, a 12x surge within a month is a very tough task—nearly impossible—given the metrics.
I then asked it to predict ADA’s price towards the end of 2024.
Source: ChatGPT
The bot said ADA will reach $10 by the end of 2024—a 25x surge within a year. It looks like the bot assumed it would hit $5 by December 2023 and keep rallying further.
A look at ADA’s daily price chart
Source: TradingView
The Cardano coin was trading at $0.5165 at the time of writing, seeing a 4.82% fall in the last 7 days. The $0.6683-$0.4649 range has been acting as resistance and support levels, respectively.
The Awesome Oscillator (AO) showed red bars registering below the 0-level, showing a bearish momentum in the market.
This sentiment was also reflected by the Relative Strength Index (RSI) which showed a reading of 44 under the 50-mark, hinting at a weak bearish movement.
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Conclusion
ADA is currently seeing a downtrend in the market as the price is struggling to break past its resistance level. However, its ecosystem has seen a lot of growth in the past year and continues with a focused roadmap for 2024.
While ChatGPT is a tool often used for trading strategies and decisions, it is important to do your own research before putting your money in the volatile crypto space.