XRP risk-adjusted returns improve, signaling potential market shift

XRP's Sharpe Z-Score, a measure of its risk-adjusted performance, has reached its highest level since last July, suggesting a gradual market improvement, according to cryptocurrency analyst Xaif Crypto. In a post on X, the analyst noted that the score currently stands at 1.62, signaling that risk-adjusted returns are strengthening from within the market. This type of trend, Xaif Crypto explained, often precedes broader recognition of a shift among market participants. However, the analyst cautioned that with the XRP price still trading below its 200-day moving average, it is too early to confirm a full long-term trend reversal. Xaif Crypto added that market recoveries often begin in quiet periods when data improves before market sentiment thaws. If the Z-score continues to rise in the coming weeks, it could lead to better investor sentiment toward XRP.