Is TRX cheap or hot? The Sharpe Ratio has the answer.
What is the Sharpe Ratio Telling Us About TRX?
The Sharpe Ratio measures risk-adjusted returns. Historically, the 1.00 level has acted as a critical pivot point for TRX. When the metric stays above 1, price action tends to be bullish. Below 1, bears usually take control.
Can It Help Identify Local Tops?
Absolutely. Whenever the Adjusted Sharpe Ratio climbs above 40, it often signals a market that's overheating. In the past, readings over 40 have lined up well with local tops.
Current Status
The current Adjusted Sharpe Ratio for TRX is 8.3, and price is around $0.29. Since the ratio dipped below 1 not long ago, we can interpret this as a “still cheap” zone — meaning we're far from overheating.
Conclusion
With TRX’s Sharpe Ratio still far from historical peaks, the data suggests there's plenty of upside room for a potential bull run in 2025.
Written by burakkesmeci
