Is $TRX at a local top? What the Sharpe ratio tells about its future - AMBCrypto Analytics

TRON’s native token, TRX, has been one of 2024’s standout performers, boasting an impressive 120% rally and achieving a new all-time high (ATH) of $0.224 on November 23. However, recent analysis hints that the cryptocurrency might face a significant correction.

CryptoQuant’s data highlights that TRX’s 180-day Sharpe ratio, a metric known for identifying market tops, has surged into high-risk territory. While this doesn’t rule out the possibility of further upside, it suggests elevated downside risk for prices beyond the current zone. TRX has already retraced by 10% from its ATH, trading at $0.20 at press time.

Despite this pullback, the market hasn’t seen overwhelming sell pressure yet. TRX holders should monitor these signals closely as they might indicate a cooling-off period after months of robust gains. This could present an opportunity for new market entrants or signal caution for existing investors aiming to lock in profits.