Tron (TRX) Sharpe Ratio Shoots High-Risk Signal, Price Crash Incoming?
Tron's (TRX) Sharpe Ratio has shot up, signaling a high-risk zone for investors. This indicator measures the asset's returns against its risk, and when it enters this zone, it historically means TRX's price may be due for a correction .
Looking at the 180-day Sharpe Ratio chart, we can see that TRX has entered this high-risk zone several times before, and each time, the price has eventually pulled back . The analyst warns that while TRX may continue its upward trend in the short term, holding positions in this high-risk zone can be detrimental to long-term strategies .
Currently, TRX's price is floating around $20, after breaking through the $22 level a few days ago . The supply of Tether's stablecoin, USDT, on the Tron network has also seen significant growth, increasing by over 37% in the past year .
It's essential to keep in mind that the cryptocurrency market is highly volatile, and predictions are never guaranteed. However, based on historical data and the current Sharpe Ratio reading, it seems that TRX's price may be due for a correction .