Crypto Whales Favor Bitcoin, Ethereum, XRP as Altcoins Hit Extreme Oversold Levels

Wealthier crypto investors are concentrating fresh capital in major tokens such as Bitcoin (BTC), Ethereum (ETH), and XRP (XRP) even as a handful of smaller altcoins flash extreme ‘oversold’ readings—an unusual mix that is fueling debate over whether a short-term bottom is forming.

According to Bithumb data tracking high-net-worth clients’ holdings and recent buying activity as of Friday UTC, allocation was heavily skewed toward large-cap assets. Bitcoin (BTC) led with an 83% share, followed by Ethereum (ETH) at 80% and XRP (XRP) at 70%. Solana (SOL) ranked next at 48%, while Ethereum Classic (ETC) came in at 35%.

The distribution suggests a defensive stance amid choppy market conditions, with capital gravitating toward assets perceived as more liquid and widely recognized. Market participants often interpret this pattern as a preference for ‘liquidity’ and relative resilience when volatility rises, rather than a broad-based risk-on rotation into smaller tokens.

At the same time, technical indicators on several altcoins show signs of capitulation. As of 02:59 UTC on Saturday, Bithumb’s Relative Strength Index (RSI) readings pointed to extreme ‘oversold’ conditions in a cluster of names. Arbitrum (ARB) posted an RSI of 5.88, Maple Finance (SYRUP) registered 7.69, and 0G (OG) stood at 8.75. My Neighbor Alice (ALICE) came in at 9.09, while Meteora (MET) was measured at 9.21.

RSI is a momentum oscillator that compares the magnitude of recent gains to recent losses to assess whether an asset may be overheated or depressed. An RSI below 30 is commonly viewed as oversold; single-digit readings are relatively rare and can coincide with sharp selloffs that sometimes precede technical rebounds. Traders often watch these levels for signs of exhaustion, particularly if selling pressure begins to ease or if volume patterns stabilize.

Still, analysts caution that extreme RSI signals do not guarantee a reversal. Follow-through depends on broader ‘order flow,’ whether declines are synchronized across the market, and whether liquidity conditions are tightening or improving. In periods of heightened uncertainty, oversold assets can remain depressed longer than expected, especially if negative catalysts persist or forced liquidation continues.

Overall, the latest snapshot highlights a market split between concentrated positioning in top-tier coins and speculative interest in deeply oversold altcoins. If risk appetite improves, single-digit RSI readings could amplify brief rebounds, but sustained recovery would likely require clearer evidence of demand returning beyond the largest assets.