High-net-worth crypto investors favor Bitcoin, Ethereum, and XRP as altcoins reach extreme oversold levels

High-net-worth investors have recently concentrated fresh buying in large-cap tokens led by Bitcoin (BTC), Ethereum (ETH), and XRP (XRP), signaling a preference for relative liquidity and perceived resilience amid a choppy market. At the same time, several smaller altcoins have slipped into extreme “oversold” territory on the Relative Strength Index (RSI), pointing to a parallel dynamic of cautious capital positioning alongside pockets of heavy downside exhaustion.

Whale concentration in major tokens

As of Saturday ET, a snapshot of affluent investors’ holdings and activity showed Bitcoin (BTC) leading with an 82% reading on the tracking metric. Ethereum (ETH) followed at 80%, while XRP (XRP) ranked third at 70%. Solana (SOL) came next at 48%, followed by Ethereum Classic (ETC) at 36%.

The steep drop-off after the top three suggests a defensive tilt. Rather than chasing short-lived narratives, wealthier market participants appear to be prioritizing assets with deeper order books, broader recognition, and tighter spreads—characteristics that typically matter more when volatility rises and liquidity becomes selective.

Extreme oversold readings in parts of the altcoin market

Technical indicators, however, show a different picture in segments of the altcoin complex. As of 12:00 p.m. local Korea time (11:00 p.m. Friday ET), multiple tokens traded with RSI readings below 10, levels that are rarely sustained and often reflect intense selling pressure over a short window.

Examples include Open Campus (EDU), with an RSI of 2.80 alongside a 1.37% decline. Bitlayer (BTR) recorded an RSI of 3.26 while rising 2.91%. Polaris Share (POLA) posted an RSI of 8.09 with a 1.54% drop. Hooked Protocol (HOOK) showed an RSI of 9.61 with a 0.74% decline, while Lombard (BARD) registered an RSI of 9.78 alongside a 3.88% gain.

How RSI is being used

RSI, or the Relative Strength Index, is a widely used momentum indicator that compares average gains to average losses over a set period to gauge whether an asset is overheated (“overbought”) or excessively sold (“oversold”). Markets commonly interpret RSI readings below 30 as oversold, sometimes coinciding with short-term rebound attempts. Analysts note, however, that RSI is a secondary signal rather than a standalone trigger; follow-through typically depends on broader risk sentiment, volume trends, and project-specific catalysts.

Market impact and near-term outlook

Taken together, the latest readings point to a bifurcated market. Large players continue to anchor exposure in major tokens, while some thinner-liquidity altcoins show signs of capitulation that can precede sharp, technically driven swings. The divergence suggests near-term price action may remain sensitive to liquidity conditions and headlines, with participants watching for confirmation through volume, macro risk appetite, and idiosyncratic news flow across individual projects.

Key takeaways highlighted in the data

• Flight to liquidity among affluent investors: High-net-worth buyers are adding exposure primarily to large-cap tokens—BTC (82%), ETH (80%), and XRP (70%)—suggesting a preference for assets with deeper order books and tighter spreads during volatility.
• Defensive positioning: Interest drops sharply after the top three, falling to SOL (48%) and ETC (36%), reinforcing concentration in perceived “safer” majors rather than broad rotation into mid- and small-cap assets.
• Altcoin capitulation signals: Several smaller tokens show extreme oversold RSI (below 10), indicating intense short-term selling pressure and downside exhaustion in pockets of the market.
• Early divergence inside oversold names: Some extremely oversold tokens are still rising (e.g., BTR and BARD), suggesting selective dip-buying or short covering despite weak momentum.
• Liquidity- and headline-driven trading: The market appears split between majors attracting “anchor” allocations and thin-liquidity altcoins that may see abrupt rebounds or further washouts depending on volume and risk sentiment.

Strategic points for traders and investors

• Interpret the whale tilt as a risk regime signal: Concentration into BTC/ETH/XRP can be viewed as a preference for tradability and resilience, potentially reflecting a “risk-off within crypto” posture until broader breadth improves.
• Use RSI extremes as an alert, not a trigger: RSI below 10 is rare and can flag capitulation, but confirmation typically requires follow-through in volume, stabilization in broader sentiment, and/or project-specific catalysts.
• Watch for confirmation markers: Potential signs of a tradable rebound include rising volume on up moves, RSI recovery back above key levels (for example, moving from below 10 toward 10 and then 30), and reduced intraday volatility.
• Account for liquidity risk in oversold micro-caps: Extremely low RSI tends to occur where liquidity is thin, increasing the likelihood of sharp price swings in either direction.
• Track divergence for rotation clues: If majors hold firm while oversold alts rebound, it may signal a short-term mean reversion bounce; if majors weaken alongside, oversold conditions may persist longer than expected.

Glossary

• Large-cap tokens: Higher market-cap cryptoassets (e.g., BTC, ETH) that typically have deeper liquidity and broader investor recognition.
• Liquidity: How easily an asset can be bought or sold without significantly moving price; often reflected in order book depth and trading volume.
• Order book depth: The amount of buy/sell orders at various price levels; deeper books usually mean smoother execution.
• Spread: The difference between the best bid and best ask; tighter spreads generally indicate better liquidity and lower trading costs.
• RSI (Relative Strength Index): A momentum oscillator comparing average gains to average losses over a set period; commonly used to gauge overbought/oversold conditions.
• Oversold: A condition where selling pressure has been strong; commonly associated with RSI below 30, with below 10 considered extreme and uncommon.
• Capitulation: A phase of intense, panic-like selling that can mark late-stage declines and sometimes precede sharp rebounds.
• Risk sentiment / macro risk appetite: The broader willingness of investors to take risk, influenced by macro headlines, rates, and market volatility.
• Idiosyncratic catalysts: Project-specific events (such as listings, upgrades, regulatory news, or token unlocks) that can drive price independently of broader market moves.