Will there be another sell-the-news moment in crypto tomorrow?
Canary Capital is expected to launch the first US-based spot XRP ETF that will have 100% exposure to the asset on November 13, after its most recent updates that allow it to bypass regular approval procedures.
Consequently, we asked ChatGPT and Perplexity whether this will turn out to be as bullish as many expected, or if it will turn out to be a classic ‘sell-the-news’ event.
What Comes First?
Since November started, XRP’s price has experienced quite the volatile rollercoaster. It plunged below $2.10 during the November 5 crash, and spiked to almost $2.60 just a few days later. It has since lost some traction and now struggles to remain above $2.40. What’s particularly interesting is that the rally from $2.10 to $2.60 occurred despite Ripple whales selling en masse.
However, Perplexity outlined that if this trend continues, the pressure on XRP’s price is likely to intensify.
“Recent on-chain analysis shows significant whale selling and large amounts of XRP being moved to exchanges over the past weeks, indicating a distribution phase. Such selling pressure from smart money often leads to subdued or even pullback price action in the short term as whales capitalize on retail optimism.”
The AI solution added that the current $2.40 level appears as the calm before the storm, as it reflects the tension between the buildup for an ETF catalyst and active selling. It outlined historical performances by ETH and BTC after their ETF launches. It warned that XRP could experience a similar “buy-the-rumor, sell-the-news” behavior, where the price rallies leading up to the event only to undergo a moderate pullback immediately after, as traders take profits.
ChatGPT’s output was similar. It believes the most likely short-term scenario for XRP’s price would be an immediate spike to around $3.00 after launch, followed by a sharp rejection and pullback to somewhere between $2.00 and $2.20.
But What About the Long-Run?
Although both AI solutions predicted short-term pain for XRP, they believe the existence of spot Ripple ETFs is fundamentally bullish for the asset’s long-term performance.
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“The longer-term outlook remains bullish due to the expected institutional inflows and improved market confidence from a regulated XRP investment vehicle. This suggests that after any typical sell-the-news dip, the price could stabilize and resume upward momentum over the subsequent weeks to months,” said Perplexity.
ChatGPT was a bit more precise in its predictions, stating that the underlying asset’s price can establish a solid base at around $2.40 for the next few weeks after the dust of the launch settles. Moreover, it could go beyond $3.20 but only under the right circumstances.
It explained that the “real trend” will be felt after 1-3 months have passed, and the direction will be determined by the actual ETF flows:
“Sustained inflows → gradual recovery and new highs.
Weak inflows → range or prolonged correction.”
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