Wealthy Crypto Investors Favor Bitcoin, Ethereum as Altcoins Signal Oversold Conditions

Wealthier crypto investors are concentrating fresh buying in market bellwethers such as Bitcoin (BTC) and Ethereum (ETH), even as a separate pocket of the market flashes signs of 'extreme oversold' conditions in smaller altcoins. The divergence underscores a cautious risk posture among large holders while select tokens experience steep drawdowns that are pushing momentum indicators to rare lows.

According to a snapshot of high-net-worth investors’ buying allocations from the previous day, Bitcoin (BTC) ranked first with an 82% buy-weighting, followed closely by Ethereum (ETH) at 80% and XRP (XRP) at 70%. Solana (SOL) was next at 48%, while Ethereum Classic (ETC) posted 36%.

The composition of the top group—dominated by large-cap, highly liquid assets—suggests capital is gravitating toward names perceived as relatively resilient during volatile periods. In practice, this preference often reflects a desire for 'liquidity' and 'downside durability' rather than aggressive return-seeking, especially when broader market conviction is mixed.

At the same time, technical data highlighted sharp weakness in a handful of smaller tokens. As of 11:59 a.m. Korea time on Thursday, which corresponds to 10:59 p.m. ET on Wednesday, several assets recorded unusually depressed readings on the Relative Strength Index (RSI), a widely used momentum indicator that compares recent gains and losses over a set period.

SIGN (SIGN) showed the lowest RSI at 7.89, alongside a -5.25% price change at the same timestamp. Particle Network (PARTI) posted an RSI of 13.56 while rising 1.29%, indicating that depressed momentum can persist even when price action briefly stabilizes. Amp (AMP) registered an RSI of 16.12 with a 0.23% gain, Orchid (OXT) came in at 16.55 with a 1.63% increase, and World Liberty Financial (WLFI) recorded an RSI of 17.39 with a 0.84% move higher.

In conventional technical analysis, an RSI below 30 is often interpreted as 'oversold' and may raise discussion of a short-term rebound. However, traders typically caution that RSI is a single-factor gauge: oversold conditions can remain in place for extended periods during risk-off phases, and follow-through depends heavily on volume, overall market sentiment, and token-specific catalysts.

Taken together, the data points to a market split between defensive positioning in major assets and lingering stress in parts of the altcoin universe. If macro sentiment and crypto-wide liquidity improve, deeply oversold tokens can see sharp countertrend moves—but absent broader support, the prevailing pattern suggests high-net-worth participants remain anchored to the most established names.