We Asked AI: Will the Price of XRP Rise or Crash Amid War Tensions in the Middle East?

The answers from the popular AI chatbot can be quite shocking to some.

Iranian forces have already retaliated against several countries in the region, and these developments led to significant volatility in the cryptocurrency market over the weekend.

With Trump warning that the military operation could continue if Iran does not withdraw, the question now is whether more fluctuations will follow and in which direction. In this article, we focused on XRP and asked ChatGPT for its thoughts on it.

First shock

OpenAI’s solution also brought the initial geopolitical shock, which is expected to hurt most financial assets, especially risky options like altcoins, as investors tend to de-risk.

“That means moving money out of volatile assets (like cryptocurrencies) and into traditional safe havens like gold or government bonds. This has already happened in recent responses to the US-Iran conflict. Historically, crypto markets have not always behaved as safe havens. Research on past conflicts (like Russia-Ukraine) shows that cryptocurrencies often act as high-beta speculative assets, experiencing more volatility rather than absorbing risk like gold.”

Consequently, ChatGPT said that bearish pressure increases immediately for altcoins like XRP. It added that institutional liquidity is typically extracted amid similar uncertainty, and that Ripple’s cross-border token could see new local lows below $1.00. Recall that the asset has not traded below that level for a year and a half, but it could fall if the situation worsens in the following days.

Chances of a rally?

While it dismissed the chances of a quick rally given the aforementioned shock, ChatGPT noted that this is not impossible in the medium to long term. However, to do this, at least one of three factors must take place.

• The demand for digital assets as a store of value is increasing
• Sharp turnaround for risky assets, such as larger-capitalization altcoins.
• Important regulatory or adoption news tailor-made for XRP

“In other words, XRP could rise if the market’s focus shifts from war risk to crypto fundamentals.”

Overall, however, ChatGPT believes that the short-term bias (in the first few weeks) will remain bearish, but once the shock passes or geopolitical tensions subside, XRP could be on the verge of a breakout rally.

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