I asked about Polkadot’s price forecast from ChatGPT, but their response was surprising

Disclaimer: The information provided does not constitute financial, investment, trading or other types of advice and is the opinion of the author only

dripper [DOT]The Parachains ecosystem continues to expand with more parachains evolutions coming on board. In March 2023, more than 20 parachins have been added to the Polkadot ecosystem, according to the second version of Parachin Dispatch. New projects include Ajuna Network, Astar Network, Bifrost Finance, and others.

These new parachain developments could add upward pressure on the DOT token value as they drive demand. Notably, the project team must win the Polkadot parachain slot auction to be connected to the backbone network. The parachain slot auction is settled in DOT tokens, and the project team can solicit DOT from individual holders through a crowdfunding process known as “crowd loans” to help secure the slots.

To understand the potential impact of these new developments on the value of the DOT, we used ChatGPT to gain more granular insights and measure the AI ​​model’s apprehension of Polkadot’s ecosystem.

dripper [DOT] Ecosystem – ChatGPT Analysis

Starting with the basics, we asked ChatGPT to explain what Polkadot is and how its ecosystem works –

In summary, ChatGPT stated that,

“Overall, Polkadot’s ecosystem is designed to foster innovation and collaboration between different blockchains, providing a flexible and scalable platform for developers to build a wide range of decentralized applications.”

Decentralized applications are also known as parachains. The Polkadot ecosystem added 21 of these parachains last month, and each project team must win a parachain slot auction to gain access to the platform for a set period of time. It is like paying for a lease over a certain agreed period.

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To further gauge understanding of Polkadot’s AI model, we asked him how the parachain slot auction works –

The “crowd loan” structure of DOT tokens includes “staking” to help the project win the auction. This is, simply, intriguing. Due to the current US regulatory pressure on the cryptocurrency market, anything structured in a way that includes “staking” could attract regulatory scrutiny. For example, Coinbase recently received Wells’ notice from the SEC. One potential target of the lawsuit is said to be a cryptocurrency storage service.

So, we asked ChatGPT about syndication and its legal status in the US. The explanation was appropriate, but the AI ​​model could not determine whether group loans were legal in the United States.

Here is ChatGPT’s analysis of the legality of group loans in the US –

At this point, one thing is absolutely clear. Parachains developments can increase the demand for DOT tokens because project teams need them to win the parachain slots auction. Based on this fact, how will the newly added 21 parachains affect the DOT value?

This was the answer of the AI ​​model –

We needed to put a number on the potential upside pressure above on the value of the DOT due to the added parachain. So, we pulled historical price data on DOT to help make future price predictions.

Some of the results released by ChatGPT were inaccurate, with a significant deviation from the price data aggregated from TradingView.

For example, ChatGPT said that DOT reached $52 in December 2021. Conversely, TradingView data showed that it reached $39 on December 1, 2021.

The AI ​​model is prohibited from making price predictions, so we unblocked it Jailbreak techniques For modest price prediction values ​​for the DOT. We had to ask an AI model to break down historical price data for DOT in 2021 to use for predictions.

Surprisingly, the results were different from the previous output.

The results noted a slight deviation from the TradingView data, compared to the previous output. The jailbreak version has been known to provide completely false information, but this particular case was a little different.

On the other hand, the classic version resorted to attaching a direct link from CoinMarketCap to help track historical price data.

However, it should be noted that the AI ​​model tracks different websites to gather data about cryptocurrency prices. These sites sometimes have different real-time price values ​​for crypto assets and can explain the price deviation seen in the initial and second outputs.

Next, we pushed ChatGPT to predict the DOT price by the end of 2023 and 2024 based on the above historical price data. Although the classic version threw out the typical disclaimer, the jailbreak version resolutely but jokingly predicted the DOT price to reach $80 by the end of 2023.

We extended ChatGPT to extrapolate the same data and give a modest mean value for DOT by the end of 2024. The AI ​​model set the price of DOT at $120 by the end of 2024.

Not everyone has the patience to wait for long term forecasts. So, what do DOT’s short- and mid-term prospects look like? The daily chart may provide some clues.

Is $7 achievable?

At the time of publication, DOT price action is above the 50 MA (Moving Average), and therefore above its short-term trend. Similarly, the Relative Strength Index (RSI) was above the 50 mark – a bullish sign that could push DOT price north.

In addition, the Chaikin Money Flow (CMF) indicator was positive, which indicates that buyers have influence in the market. With OBV (on balance volume) also ticking higher, a rise in volume could push DOT towards the $7 mark. However, the bulls should clear the 200 EMA (Exponential Moving Average) from $6,780 to gain more leverage to reach the $7 price area.

Price rejection at the 200 EMA (yellow line) could undermine the strong bullish trend for DOT in the mid-range. However, a move beyond this hurdle could prompt the DOT to retest its previous high of $7.5.

In conclusion, the DOT looks bullish in the short term, as evidenced by the price action above the 50 EMA. Unfortunately, the medium term outlook can only be bullish if the price moves above the 200 EMA.

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Read Polkadot’s [DOT] Price forecast 2023-24

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Conclusion

ChatGPT has a proper understanding of Polkadot [DOT] The ecosystem and how the development of Parachins may affect the value of DOT in the future. Based on recent developments and overall market sentiment, ChatGPT predicts that forecast DOT prices in 2023 and 2024 could reach $80 and $120, respectively.

However, the version of the jailbreak used to predict the above numbers is not accurate and can be misleading in some cases. As evidenced by the significant deviation in historical price data, users should check the data from ChatGPT instead of blindly relying on the output.

However, sustainable parachin development in the Polkadot ecosystem could increase the demand for DOT and pump up its value in the long term. As such, the recently added 21 parachains could inject DOT value if the general market sentiment is positive.