Wealthy Crypto Investors Favor Bitcoin, Ethereum as Altcoins Signal Oversold Conditions

Wealthier crypto investors are concentrating fresh buying in market bellwethers such as Bitcoin (BTC) and Ethereum (ETH), even as a separate pocket of the market shows signs of “extreme oversold” conditions in smaller altcoins. The divergence points to a cautious risk posture among large holders, while select tokens experience steep drawdowns that are pushing momentum indicators to rare lows.

High-net-worth buying allocations favor major tokens

Based on a snapshot of high-net-worth investors’ buying allocations from the previous day, Bitcoin (BTC) ranked first with an 82% buy-weighting. Ethereum (ETH) followed closely at 80%, while XRP (XRP) posted 70%.

Solana (SOL) was next at 48%, while Ethereum Classic (ETC) posted 36%.

The composition of the top group—dominated by large-cap, highly liquid assets—suggests capital is gravitating toward names perceived as relatively resilient during volatile periods. In practice, this preference often reflects a focus on liquidity and downside durability rather than aggressive return-seeking when broader market conviction is mixed.

Smaller tokens show sharply depressed RSI readings

At the same time, technical data highlighted weakness in a handful of smaller tokens. As of 11:59 a.m. Korea time on Thursday (10:59 p.m. ET on Wednesday), several assets recorded unusually low Relative Strength Index (RSI) readings, a momentum indicator that compares recent gains and losses over a set period.

• SIGN (SIGN): RSI 7.89, with a -5.25% price change at the same timestamp
• Particle Network (PARTI): RSI 13.56, rising 1.29%
• Amp (AMP): RSI 16.12, with a 0.23% gain
• Orchid (OXT): RSI 16.55, with a 1.63% increase
• World Liberty Financial (WLFI): RSI 17.39, with a 0.84% move higher

Oversold signals may not guarantee a rebound

In conventional technical analysis, an RSI below 30 is often interpreted as “oversold” and may prompt discussion of a short-term rebound. However, traders typically caution that RSI is a single-factor gauge: oversold conditions can persist for extended periods during risk-off phases, and follow-through depends on volume, overall market sentiment, and token-specific catalysts.

Market split: defensive majors vs. stressed altcoins

Taken together, the data points to a market split between defensive positioning in major assets and lingering stress in parts of the altcoin universe. If macro sentiment and crypto-wide liquidity improve, deeply oversold tokens can see sharp countertrend moves; absent broader support, the pattern suggests high-net-worth participants remain anchored to the most established names.