Ripple’s native token XRP is trading near the $1.40 level on Thursday and dipped 2.6% in the day’s trade. The leading altcoin has relatively cooled down after going from $1.10 to $1.50 in the last week of August. It is now range-bound on the charts, but has held on to its resistance levels, despite the market’s challenges. Moreover, the ongoing US-Iran negotiations are yet to conclude, as American forces struck five Iranian oil tankers on Tuesday.
Also Read: Bank for International Settlements Tests XRP Ledger
Should You Consider Buying XRP Now or Skip It?
Bitcoin, which was at $62,000 in the last week of August, surged to $78,000 after President Donald Trump announced that the US is considering buying a “sizeable” amount of BTC. This led the broader cryptocurrency market to turn green, including Ripple’s XRP. The global market scenario has changed since then, with Brent oil prices reaching $100 per barrel and Crude oil prices on the verge of hitting that level.
This has already affected the global stock market, with India’s Sensex seeing a continuous four-day decline. The Dow Jones index also plunged more than 400 points on Wednesday as oil prices topped $100. Treasury yields have also hit a November 2023 high, adding pressure on equities ahead of key US inflation data. Therefore, XRP is not in a safe territory, as the market is primed for a downturn due to global developments.
Taking an entry position in XRP right now is a risky affair, as surging oil prices can pull both the stock and cryptocurrency markets down. Wall Street is anticipating oil prices to rise further, and this leads to tumultuous times for the global equity markets. It is best to wait and watch global developments before taking an entry position in XRP. A sharp correction from here could erase all profits and take investors back to square one.