Bitcoin, Ethereum Dominate Whale Allocations as Oversold Altcoins Diverge

Crypto ‘whales’ have been leaning heavily into Bitcoin (BTC) and Ethereum (ETH) in recent sessions, underscoring a defensive shift toward high-liquidity majors even as pockets of the altcoin market flash extreme ‘oversold’ signals. The split highlights a market caught between capital preservation and selective short-term rebound hunting.

According to a snapshot of wealthy-investor positioning and recent buying activity compiled Tuesday UTC, Bitcoin topped the allocation list at 82%, followed closely by Ethereum at 80%. XRP (XRP) ranked third with 71%, while Solana (SOL) drew 49% and Ethereum Classic (ETC) stood at 36%.

The concentration in majors suggests that larger investors are prioritizing assets with deeper order books, broader recognition, and comparatively tighter spreads—traits that tend to matter more during volatile stretches. Market participants often interpret this kind of ‘flight to liquidity’ as a sign that risk appetite remains cautious, even if headline prices stabilize.

At the same time, several smaller tokens registered unusually depressed readings on the Relative Strength Index (RSI), a popular momentum indicator used to gauge whether an asset has become overheated or excessively sold off. An RSI below 30 is typically considered ‘oversold’ by technical traders, though the signal is probabilistic rather than definitive.

As of 12:00 UTC, SIGN (SIGN) posted the lowest RSI reading at 4.84, alongside a 1.57% decline on the day. Particle Network (PARTI) showed an RSI of 12.77 with a 0.35% gain, while DAO Maker (DAO) registered an RSI of 16.51 and fell 0.74%. Puffer (PUFFER) came in at 16.72 with a 0.23% rise, and Orchid (OXT) stood at 19.25 after slipping 0.70%.

Such single-digit to low-teens RSI readings can attract short-term traders looking for ‘mean reversion’ bounces, particularly if selling pressure begins to ease and volume confirms stabilization. Still, analysts caution that RSI alone is not reliable proof of a bottom. In trending markets, oversold assets can remain oversold for extended periods, especially if broader sentiment stays risk-off.

For that reason, traders typically look for additional confirmation—such as improving volume, reduced volatility, or a broader shift away from majors and back toward higher-beta tokens—before concluding that a durable reversal is underway. For now, the data paints a market where ‘institutional-style’ caution in Bitcoin and Ethereum coexists with tactical interest in heavily discounted altcoins, a combination that often precedes choppy, headline-sensitive trading rather than a clear trend.