XRP Price Holds $1.36 as Sharpe Ratio Hits 1-Year High: Is $2 The Next Target?

XRP price is holding near $1.36 after a sharp recovery from its recent lows, with both market momentum and risk-adjusted performance improving. XRP has broken above a descending trendline on the daily chart, while its Binance Sharpe Ratio has climbed to 0.207, the highest level since August 2025. The recovery now faces a decisive test near $1.40, followed by the broader $1.60–$2.00 resistance zone, which could determine whether XRP extends its rebound toward $2.

XRP Sharpe Ratio Signals Improving Risk-Adjusted Performance

XRP price recovery is also accompanied by a notable improvement in XRP’s risk-adjusted return profile. On-chain data shows XRP’s Binance Sharpe Ratio at approximately 0.207, its highest reading since August 2025. The ratio has improved alongside XRP’s recent recovery toward $1.40.

The Sharpe Ratio measures return relative to volatility, making its rise relevant when assessing whether an asset’s recent performance has improved on a risk-adjusted basis. While the indicator is not a standalone bullish signal, the current reading adds weight to the broader improvement in XRP’s market structure. The key takeaway is the alignment between price and momentum: XRP is recovering from a prolonged decline while the Sharpe Ratio is simultaneously moving higher.

Liquidation Heatmap Puts $1.40 in Focus

The Binance XRP/USDT liquidation heatmap highlights significant liquidity around the current price region and toward $1.38–$1.40. That area could become an important battleground if XRP accelerates higher. A move through concentrated liquidation zones can increase short-term volatility as leveraged positions are closed, potentially adding momentum to an existing breakout.

Above this region, the daily chart shows the more important resistance band around $1.55–$1.60. This remains the level that XRP bulls ultimately need to reclaim to establish a broader bullish reversal.

XRP Price Analysis: Can Bulls Reach $2 Level?

The XRP/USD daily chart shows a clear shift from the prolonged downtrend that dominated price action through much of the year. After forming a base near the $1.20 support zone, XRP broke above its descending trendline with a sharp volume expansion. The move also pushed price back above key moving-average levels around $1.30–$1.35, strengthening the short-term market structure.

XRP is currently trading around $1.36, following the initial surge toward the $1.40 region. The pullback from that move remains contained, leaving the breakout structure intact as long as buyers defend the reclaimed support area. The immediate hurdle is now $1.40. A sustained move above this level would provide confirmation that buyers are attempting to extend the rally toward the $2 level. 

Final Words

XRP’s breakout structure remains constructive while price holds above $1.30–$1.35. A decisive move above $1.40 would strengthen bullish momentum and expose the $1.55–$1.60 resistance zone. Clearing this barrier with strong volume could confirm a broader trend reversal and bring $2.00 into focus. However, a sustained break below $1.30 would weaken the setup, while losing $1.20 would invalidate the bullish thesis.