XRP’s risk-adjusted performance has shown early signs of improvement, as its Sharpe Ratio turned slightly positive on March 28 after months of weak readings. The positive signal comes as the 30-day average return for the cryptocurrency is 0.00063.

XRP is currently trading at $1.34, representing a decline of 1.89% in the last 24 hours. The market capitalization of the cryptocurrency is $82 billion, and the trading volume is $3.13 billion. The dominance of cryptocurrency in the market is 3.59%.

XRP Sharpe Ratio Hits 0.0267 Signal

Crypto analyst Arab Chain noted that the Sharpe Ratio, now measured at 0.0267, suggests that XRP’s returns are slightly exceeding associated risks. The weak performance is attributed to the period between October 2024 and February 2025, reflecting weak performance and limited investor confidence across broader market conditions.

However, the indicator appears to be volatile, especially because if the ratio dips into negative territory, it could be an indicator of increased volatility. The current trend appears to be on the right path, but the gains recorded so far have been small due to the overall uncertainty in the market.

Onchain data also shows signs of increased stability, especially because the XRP whales have been accumulating the asset over the last month. The average daily inflow into the asset has been around $9 million, indicating the longest accumulation period since mid-2025.

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XRP Technical Breakdown Supports Cautious Outlook Scenario

Despite the improved metrics, the technical analysis shows that the XRP price has the potential for a cautious outlook scenario. The crypto analyst, ChartNerd stated that the XRP price has likely reached its peak, trading around the $1.60 mark in March. 

The analyst also stated that the current price could fall if the overall market trends worsen, especially because the Bitcoin price tends to form a lower high in 2022, only to fall sharply.

The derivatives data also show increased participation in the XRP market, especially because the open interest increased by 14.8% on the 26th of March, the highest rate since early March. The repeated long liquidations above the $2 million mark show unstable trends, where the long position tends to be repeatedly reset due to the high level of volatility.

From a technical perspective, the XRP price has also invalidated its ascending triangle pattern due to the 13% fall over the last ten days. The price could fall to the $1.27 or $1.11 mark if the bearish pressure continues.

This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.

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