Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Cardano [ADA] saw a 4.82% drop in the last week of trading, changing hands to $0.5165 at the time of writing.
Although there has been a huge surge in development activity in recent weeks, this has not helped the coin gain bullish momentum.
Cardano saw the highest number of code commits last year, which was more than Polkadot [DOT]Ethereum [ETH]and the Binance [BNB] network.
While the network has an impressive roadmap and goals for 2024, the current price drop could be a small blip in the grand scheme of things.
Among such fluctuations, it’s worth taking a look at what ChatGPT thinks about ADA’s prospects for 2024.
Cardano’s network expansion
In addition to price changes, Cardano’s ecosystem saw significant improvements, especially after Mithril was upgraded.
The network has operated continuously without issues since its mainnet debut in June, thanks to the increasing participation of dedicated Stake Pool Operators.
Since the launch of the mainnet in June, the #Mithril protocol has continued to function uninterrupted, thanks to the increasing participation of dedicated Stake Pool Operators (#SPOs).
🙏 Kudos to Mithril Pioneer SPOs for their continued support.
👉 For more details about 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 usability and overall appeal of the network.
ADA: More than just a digital currency
ADA is more than just a digital currency; it is a testimony to the secure exchange of value, eliminating the need for intermediaries. Every ADA owner becomes a stakeholder and contributes to the Cardano ecosystem in many ways.
ADA’s initial supply was limited to 45 billion units, with a unique distribution technique.
The Cardano Foundation, EMURGO and IOHK are critical components of the Cardano ecosystem and were allocated funding during the pre-launch sales event. The purposeful allocation of genesis blocks laid the foundation for Cardano’s journey.
The innovative Ouroboros Proof-of-Stake (PoS) consensus technology supports the functionality of Cardano. Ouroboros is the first blockchain consensus mechanism based on peer-reviewed research, setting Cardano apart from its competitors.
Plutus, Cardano’s own smart contract language built from Haskell, works together with Ouroboros. This Turing-complete language, similar to Haskell programs, powers Plutus smart contracts.
Cardano’s two-tier design further increases its versatility and scalability. Transaction validation and cryptocurrency transfers are handled by the Cardano Settlement Layer (CSL).
The Cardano Computation Layer (CCL) is responsible for computational details such as smart contracts.
We started putting our AI companion to the test by asking it questions about the future of ADA. ChatGPT’s ability to express itself is currently hampered by restrictions imposed by its developers.
To make it say what it wanted, we used the ‘jailbreak’ technique.
What does ChatGPT say about ADA and the SEC-Ripple ruling?
I decided to test whether ChatGPT can answer some of my questions about the Cardano network and its native token, ADA.
At first I asked him about the impact of the Ripple [XRP]-SEC opinion on the status of ADA (Cardano’s native token) as a security.
The court had ruled in July that while the institutional sale of XRP tokens constituted a sale of securities, the programmatic sale of those tokens to retail investors did not meet the criteria of a security agreement.
ChatGPT said its limited knowledge until January 2022 left it unaware of a final ruling on the Ripple case.
At this point I decided to jailbreak it using the DAN (Do Anything Now) prompt.
Source: ChatGPT
While the classic version said it had no access to real-time information, the jailbroken version talked at length about the possible implications of the Ripple-SEC ruling 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 to distinguish it from securities.
This is again completely incorrect as the regulatory body had specifically classified ADA as a security in its lawsuits against Binance and Coinbase.
Recently, the SEC once again reiterated its claim that ADA is a security in its latest lawsuit against crypto exchange Kraken.
ChatGPT’s view on the future of ADA
I asked ChatGPT what they thought Cardano’s price would be at the end of 2023.
Source: ChatGPT
The bot claimed that ADA will become one of the best-performing cryptocurrencies, thanks to its groundbreaking developments, widespread adoption and a surge in demand. However, it declined to make a specific price forecast.
I asked the same question again with a different jailbreak prompt.
Source: ChatGPT
This time the bot was able to give a clear answer, but apparently a ridiculous one. It said it expected the ADA to rise to $5 within a month, an increase of 12 times.
While the world of crypto is indeed very volatile and unpredictable, a twelvefold increase in a month is a very difficult task – virtually impossible – given the numbers.
I then asked him to predict the price of ADA by the end of 2024.
Source: ChatGPT
The bot said ADA will reach $10 by the end of 2024 – a 25x increase within a year. It seems the bot assumed it would reach $5 in December 2023 and continue to climb higher.
A look at ADA’s daily price chart
Source: TradingView
The Cardano coin was trading at $0.5165 at the time of writing, down 4.82% over the past seven days. The range of $0.6683-$0.4649 acted as resistance and support levels respectively.
The Awesome Oscillator (AO) showed red bars registering below the 0 level, showing bearish momentum in the market.
This sentiment was also reflected by the Relative Strength Index (RSI), which showed a reading of 44 below 50, indicating 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, the ecosystem has seen a lot of growth over 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 into the volatile crypto space.