Bitcoin (CRYPTO: BTC) held above the $66,000 level while Ethereum (CRYPTO: ETH), XRP (CRYPTO: XRP), Cardano (CRYPTO: ADA) and Chainlink (CRYPTO: LINK) maintained recent gains.

On-chain data suggests improving market sentiment but also an increasing risk of short-term profit-taking.

Not In Easy ‘Buy Fear’ Zone

In an X post on July 21, Santiment data noted that the 30-day Market Value to Realized Value (MVRV) ratio for BTC, ETH, ADA, XRP and LINK has moved back above the neutral level.

The shift means traders who accumulated those assets over the past month are, on average, back in profit following Bitcoin’s recovery above $65,000.

Santiment attributed the improvement to softer U.S. inflation data, improving risk appetite and renewed demand for spot Bitcoin ETFs.

However, the analytics firm cautioned that positive MVRV readings historically make markets more vulnerable to profit-taking as recently profitable holders become more willing to sell.

“The setup isn’t overheated yet, but it’s no longer the easy ‘buy fear’ zone either,” Santiment noted.

Overall, the on-chain indicators paint a mixed picture for crypto markets.

Improving MVRV readings suggest the recent recovery has restored confidence, but return to profitability for short-term holders raises the likelihood of increased selling if momentum fades.

Whale Selling Pressure Continues To Ease

In a separate X post on July 21, CryptoQuant reported that its Momentum Whale Inflow Ratio has fallen into negative territory for the first time this year after remaining positive for roughly five months.

The metric tracks whale inflows to exchanges, where increased deposits are often associated with potential selling activity.

According to CryptoQuant, the negative reading suggests large holders are sending fewer Bitcoin to exchanges, indicating easing selling pressure and a reduction in near-term bearish momentum.

The firm said declining whale inflows could support a short-term recovery if the trend persists.

XRP Breakout Targets $1.30

Crypto analyst Ali Martinez said XRP has confirmed a technical breakout after clearing a key resistance level.

He added that the next major upside target is $1.30.

The move comes as XRP joins Bitcoin and several large-cap cryptocurrencies in returning to positive 30-day MVRV territory, signaling improving short-term profitability for recent buyers.

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