The XRP Sharpe Ratio agrees with continued whale earnings.
The Sharpe Ratio for XRP (XRP) turned slightly positive on March 26 after spending months at or below zero between October 2024 and February 2025, a measure of return per risk unit.
The 30-day average return of 0.00063 supports this positive change, while the Sharpe ratio stands at 0.0267, which shows that “current returns are still above the risk”.
According to Onchain data, whales have been steadily hoarding XRP over the past month, indicating demand despite weak price action.
XRP's risk-adjusted returns hint at a certain long-term decline
Crypto analyst ArabChain stated that the recent improvement in the Sharpe ratio is consistent with the lifting of trading activity, which indicates a better return for XRP owners in the long term. The analyst noted that the ratio indicates a gradual positive rebalancing, which could limit further downside for the altcoin. However, the analyst added,
“If the indicator falls back into negative territory, it could signal a return to volatility and weakening momentum.”
Reinforcing the positive narrative, XRP whale flows have reached a 30-day moving average of around $9 million per day. The positive flows have been in place since February 27, marking the longest accumulation phase from April to July 2025.
The last phase of accumulation in Q2 2025 brought XRP's expansion rally to a high of $3.65 on July 18, 2025.
The combination of a positive Sharpe ratio reading and steady whale flows point to bullish sentiment alongside accumulation. Profitability is low, volatility is relatively stable. These alignments focus on whether whale migration continues to support a series of responses over time.
RELATED: XRP Price Drops 50% Despite Goldman Sachs' $152M ETF Exposure
XRP open interest increases with a broken position
Crypto analyst Amr Taha said the 24-hour change in open interest reached 14.8% on March 26, the highest level since March 4, indicating renewed trader participation. This increase in activity also coincides with repeated long-term pressure, with liquidity events above $2.5 million on March 18, followed by $2.45 million on March 21 and $2.15 on March 26.
These moves show that a strong long-term position is still clearing amid short-term volatility. Therefore, when the futures movement increases, with frequent liquid signals, they create an unstable market where traders are exposed to further resets.
The technical structure indicates a clear bearish bias. XRP has canceled its bullish ascending triangle pattern, down 13.63% in the last 10 days. If the current market structure continues, the altcoin could retest support levels near $1.27 and annual lows of $1.11 in the coming weeks.
Related: Bittensor's TAO price could drop 40% in five weeks: Fractal data
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