XRP’s Sharpe Ratio turned positive on March 26, marking a notable shift after months of negative performance. With a 30-day average return of 0.00063 and a Sharpe ratio of 0.0267, this indicates that current returns are surpassing associated risks. Onchain data reveals that whale accumulation has been consistent, with inflows averaging $9 million per day since late February, suggesting a growing demand despite XRP’s recent price struggles.
The uptick in the Sharpe Ratio aligns with increased trading activity, hinting at improved long-term returns for XRP holders. However, analysts caution that a decline back into negative territory could signal renewed volatility. Additionally, a rise in open interest—up 14.8%—reflects heightened trader engagement but also reveals a precarious market structure characterized by frequent liquidations, indicating bearish sentiment.
Market professionals should watch for continued whale support and the potential for stable returns, while remaining alert to the risks of volatility and price retracement toward key support levels.
Source: cointelegraph.com