XRP Is Soaring Today — Is the Cryptocurrency a Buy?

XRP (XRP +6.43%) is surging in Wednesday’s trading. As of 1:40 p.m. ET, the cryptocurrency’s token price had jumped 5.4% over the past 24 hours. Meanwhile, Bitcoin was up 6.6% over the stretch, and Ethereum had gained 7.8%.

Valuations for cryptocurrencies and stocks are rapidly moving higher today in response to new information suggesting that the U.S. and Israel’s war with Iran could draw to a close earlier than previously expected. The New York Times reported this morning that Iran’s Ministry of Intelligence had indicated to the CIA that it was open to discussions that could end the war.

Image source: Getty Images.

Is XRP a buy right now?

The recent swell of conflict in the Middle East has created fears that elevated oil prices and supply chain disruptions could cause inflation to accelerate. If inflation picks back up, the Federal Reserve will be less likely to cut interest rates. In turn, positive momentum for the crypto market could face significant pressures.

Today’s Change

(6.43%) $0.09

Current Price

$1.45

Key Data Points

Market Cap

$89B

Day’s Range

$1.35 – $1.46

52wk Range

$1.14 – $3.65

Volume

3.9B

Even with today’s pop, XRP is still down roughly 62% from the peak it hit last year. For long-term investors who are bullish on the token, there’s still a lot of upward room in a potential rebound trade. Cryptocurrencies have seen a dramatic valuation pullback since last summer, but recent bullish momentum doesn’t necessarily mean that a new pricing floor has been established.

While a speedy end to the war would likely be a significant bullish catalyst for the crypto market, investors should be cautious when it comes to betting heavily that this will occur. Along similar lines, there’s still a lot of uncertainty on the broader macroeconomic front. With that in mind, I think that investors who are looking to establish a position in XRP or add to existing holdings may be able to wait for a better purchasing point.