Bitcoin, Ethereum Attract Whale Flows as Altcoins Flash Extreme Oversold Signals

Heavyweight crypto investors have recently concentrated buying in major assets such as Bitcoin (BTC) and Ethereum (ETH), a pattern that underscores a defensive tilt amid heightened volatility. At the same time, a cluster of smaller altcoins is flashing ‘extreme oversold’ signals, with the Relative Strength Index (RSI) falling into the single digits to low teens—levels that typically indicate capitulation-like momentum.

According to a snapshot of high-net-worth investors’ holdings and purchases from Monday UTC, Bitcoin (BTC) led the list with an 83% share. Ethereum (ETH) followed at 80%, while XRP (XRP) ranked third at 70%. Solana (SOL) came in at 48%, and Ethereum Classic (ETC) at 35%.

The composition of the rankings—dominated by large-cap names—suggests that affluent investors are prioritizing ‘liquidity’ and ‘name recognition’ as macro uncertainty and market-wide positioning remain cautious. In risk-off phases, deeper books and tighter spreads in majors often make them the preferred vehicles for adding exposure or rebalancing, even as speculative capital retreats from thinner altcoin markets.

On the technical side, oversold conditions were most pronounced in a set of altcoins flagged in a “could this be the bottom?” screen at 12:00 UTC. MegaETH (MEGA) posted an RSI of 8.57, while Delysium (AGI) recorded an RSI of 10.10 alongside a -7.44% daily decline, marking one of the steeper drops among the names highlighted. Waxl (WAXL) registered an RSI of 12.22 with a -2.68% move, Enjin Coin (ENJ) showed an RSI of 12.69 (-0.37%), and Ontology (ONT) printed an RSI of 13.98 (-2.40%).

RSI is a widely used momentum indicator that compares the magnitude of recent gains to recent losses over a defined period to gauge whether an asset is ‘overbought’ or ‘oversold.’ Readings below 30 are commonly interpreted as oversold, but sub-15 levels are generally viewed as unusually weak momentum—often appearing when forced selling, liquidity gaps, or abrupt sentiment shifts dominate price action.

Still, low RSI alone does not confirm a durable bottom. Traders typically look for confirming signals such as stabilizing or rising volume, a broader improvement in ‘risk appetite’ across the market, and price reactions around previously traded zones where supply may re-emerge. Until those factors align, extreme RSI levels may indicate vulnerability to further volatility as much as they suggest potential mean reversion.

The divergence between major-asset accumulation and sharp technical oversold readings in select altcoins highlights a market split: capital is consolidating in established networks while certain high-beta tokens absorb the brunt of risk reduction. How quickly sentiment normalizes will likely depend on overall liquidity conditions and whether buyers step in decisively at key support levels.