On March 26, the Sharpe Ratio for XRP turned positive, indicating a shift in the altcoin's return per unit of risk after months of stagnation. The ratio now stands at 0.0267, reflecting a 30-day average return of 0.00063, suggesting that current returns surpass inherent risks. This improvement coincides with a notable increase in trading activity and accumulation by large holders, or whales, who have been accumulating XRP at a rate of $9 million daily since February 27, marking a significant accumulation period.
Crypto analyst Arab Chain highlighted that the positive trend in the Sharpe Ratio aligns with the growing trading activity, which may limit potential downside for XRP holders. However, the analyst warned that a decline back into negative territory could signal renewed volatility. Meanwhile, the open interest for XRP has surged to 14.8%, the highest since March 4, reflecting increased trader engagement and pressure on long positions amidst recent liquidations.