Crypto Whales Shift to Bitcoin, Ethereum as Altcoins Hit Extreme Oversold Levels

Wealthy crypto investors are increasingly concentrating fresh capital in major, high-liquidity tokens—a positioning shift that underscores a flight toward perceived safety even as pockets of the market flash ‘extreme oversold’ technical readings.

As of Tuesday UTC (based on the latest available snapshot), the buying share among top investors was led by Bitcoin (BTC) at 83%, followed by Ethereum (ETH) at 80% and XRP (XRP) at 70%. Solana (SOL) came next at 49%, while Ethereum Classic (ETC) accounted for 36%.

The allocation pattern suggests that, during a volatile tape, large holders are prioritizing assets with deeper order books and stronger name recognition—coins that typically offer tighter spreads, higher liquidity, and smoother execution during drawdowns. Market participants often interpret this kind of concentration as a sign that risk appetite is becoming more selective: capital doesn’t necessarily leave crypto entirely, but it rotates into the most liquid benchmarks.

At the same time, several smaller-cap names posted ‘extreme oversold’ signals on the Relative Strength Index (RSI), a widely used momentum indicator that compares the magnitude of recent gains and losses to gauge whether an asset is overheated (‘overbought’) or depressed (‘oversold’). At 11:59 UTC, Venus (XVS) recorded an RSI of 1.58, while Sign (SIGN) stood at 3.06. DAO Maker (DAO) came in at 13.81, Paycoin (PCI) at 14.42, and Plasma (XPL) at 14.67.

Price action at the same timestamp remained negative across the group, reflecting continued selling pressure: XVS fell 0.82%, SIGN slipped 0.76%, DAO declined 1.68%, PCI eased 0.58%, and XPL dropped 1.39%. In other words, the low RSI readings were not the result of a sudden rebound, but rather confirmation that these tokens were entering deeply depressed momentum territory while downside moves persisted.

In technical analysis, RSI readings below 30 are commonly viewed as ‘oversold’, a zone where traders sometimes begin to anticipate a short-term bounce. However, analysts caution that a low RSI alone does not guarantee an immediate reversal. Whether a trend stabilizes typically depends on broader conditions such as volume dynamics, volatility expansion, and shifts in overall market risk sentiment.

The divergence between major-asset accumulation and extreme RSI weakness in select altcoins highlights a market split: larger investors appear to be consolidating exposure into the most liquid crypto benchmarks, while weaker segments continue to absorb selling. If risk appetite improves, oversold names may attempt technical rebounds—but the broader implication remains that liquidity is pooling at the top of the market.