Wealthy Crypto Investors Favor Bitcoin, Ethereum, XRP as Altcoins Hit Oversold Levels

Wealthy crypto investors are continuing to concentrate fresh buying in large-cap assets such as Bitcoin (BTC), Ethereum (ETH), and XRP (XRP), even as several smaller tokens flash extreme 'oversold' readings on technical indicators—a split that underscores a market torn between risk-off positioning and opportunistic bottom-fishing.

Data tracking high-net-worth investor activity in the Korean won (KRW) market as of Wednesday ET showed major assets dominating portfolio construction. Bitcoin (BTC) posted the highest participation at 83%, followed by Ethereum (ETH) at 80% and XRP (XRP) at 70%. Solana (SOL) registered 48%, while Ethereum Classic (ETC) came in at 35%.

The distribution suggests that, amid elevated volatility, larger investors are prioritizing perceived 'liquidity' and relative stability. In practice, that often means concentrating exposure in assets with deeper order books, broader derivatives markets, and greater institutional adoption—features that tend to cushion price impact during sharp intraday moves.

At the same time, a separate slice of the market is showing signs of capitulation. As of Wednesday 12:00 p.m. KST (Wednesday 11:00 p.m. ET), several KRW-quoted tokens sat near the bottom of the Relative Strength Index (RSI) rankings, with readings in the low teens—levels typically associated with severe selling pressure. B3 (B3) recorded an RSI of 10.62 while down 1.31% on the day. MegaEder (MEGA) posted an RSI of 11.76 despite rising 1.61%. Delysium (AGI) showed an RSI of 14.29 alongside a 2.75% gain, while Across Protocol (ACX) registered an RSI of 15.24 with a 0.49% increase. Pax Gold (PAXG) reported an RSI of 15.89 and was up 0.07%.

RSI compares the magnitude of recent gains and losses to gauge momentum, with readings below 30 commonly interpreted as 'oversold' and potentially setting the stage for a short-term technical rebound. However, traders typically treat RSI as a secondary tool rather than a standalone signal, looking for confirmation from volume trends, broader market direction, and whether price is forming higher lows or continuing a sustained downtrend.

Overall, the latest positioning highlights a familiar late-cycle dynamic: high-net-worth accounts leaning into majors for defensive exposure, while selective altcoins exhibit extreme momentum washouts that can attract speculative bids—but also carry the risk that weakness persists if liquidity remains thin and sentiment stays fragile.