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

Wealthy crypto investors are concentrating their exposure in major assets such as Bitcoin (BTC), Ethereum (ETH), and XRP (XRP), even as a separate pocket of the altcoin market sinks into 'extreme oversold' territory, according to a fresh snapshot of portfolio positioning and technical indicators released Sunday ET.

The split highlights a familiar late-cycle dynamic: capital seeking relative safety and 'liquidity depth' in large-cap tokens, while thinner names experience sharper drawdowns that can push momentum gauges to unusually depressed levels.

Based on portfolio data as of Saturday ET (May 2), Bitcoin (BTC) topped allocations among high-net-worth participants, appearing in 83% of tracked holdings or buy activity. Ethereum (ETH) followed closely at 80%, while XRP (XRP) ranked third at 70%. Solana (SOL) registered 48%, and Ethereum Classic (ETC) came in at 35%.

Market observers typically interpret this skew toward BTC and ETH as an indication that larger investors are prioritizing assets with deeper order books and broader institutional participation, particularly during volatile conditions. XRP’s high ranking likewise suggests continued demand for large-cap alternatives that remain heavily traded across global venues.

In contrast, several smaller tokens posted sharply depressed readings on the Relative Strength Index (RSI), a widely used momentum oscillator that compares the magnitude of recent gains and losses to assess whether an asset may be overheated ('overbought') or overly sold off ('oversold'). The dataset’s "Is this the bottom?" screen, timestamped at 12:00 local time, flagged multiple assets with RSI values near or below 10—levels that are rare outside of abrupt sell-offs.

Request (REQ) showed the most severe print, with an RSI of 5.56. World Liberty Financial (WLFI) came in at 8.32, Sign (SIGN) at 10.97, Orchid (OXT) at 11.40, and Camp Network (CAMP) at 12.61. While RSI readings below 30 are commonly viewed as 'oversold,' sub-10 values can indicate capitulation-like momentum, particularly in low-liquidity markets where price swings can accelerate quickly.

Still, analysts caution against treating RSI as a standalone timing tool. Oversold conditions can persist in strong downtrends, and a genuine shift in market direction is typically confirmed through accompanying signals such as rising spot volume, stabilization in volatility, and evidence of trend reversal rather than a single indicator.

For now, the combined picture suggests that high-net-worth capital remains anchored to major crypto assets, while pockets of the altcoin market are experiencing outsized downside pressure—an imbalance that could shape short-term liquidity flows and broader sentiment if oversold tokens fail to attract follow-through buying.