XRP, preparing for a major profitability turnaround...Is March's humiliation over?

▲ XRP

XRP has ended the slump recorded in March and entered a full-fledged rebound phase, offering investors high rewards relative to risk.

According to cryptocurrency specialized media Bitcoinist on April 29 (local time), XRP's Sharpe ratio, which indicates profitability relative to risk, has fully recovered in April, moving past the March downturn. Virtual asset data analysis company Santiment analyzed that while XRP investors received almost no rewards compared to the risks they took last month, recent indicators are showing an upward curve, signaling a turnaround.

In March, XRP's Sharpe ratio sharply declined due to the price correction that occurred during its attempt to break past $0.75, lowering its investment attractiveness. The Sharpe ratio is a key indicator that measures an asset's return relative to its volatility; a lower number means lower investment efficiency. A Santiment official explained, "XRP remained in a phase where it could not provide adequate returns to investors from late March to early April, but recent indicators have improved, increasing the likelihood of entering a bull market."

Positive signals are also being detected from a technical analysis perspective. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are showing gradual recovery, accumulating energy for a price breakout. Particularly, with the re-entry of liquidity into the altcoin market after the Bitcoin (BTC) halving, expectations for an independent XRP rally are growing.

The increase in the market's open interest is also contributing to increased price volatility. Both individual and institutional investors appear to be accumulating XRP, utilizing price corrections as an opportunity to buy at a low point. Ripple's expansion of its global payment network and its technological achievements in complementing or replacing the SWIFT (Society for Worldwide Interbank Financial Telecommunication) system are also factors supporting its long-term value.

The improvement in April's indicators is likely to be more than just a technical rebound, potentially marking the beginning of a powerful price appreciation cycle. As real-world use cases based on the XRP Ledger increase and regulatory uncertainties are resolved, the process of the asset's intrinsic value being reflected in its market price is gaining momentum. Investors are closely monitoring the further upward trend of the Sharpe ratio, weighing the timing of a powerful price rally to unfold in the future.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*