Yes we are noticing market is continuously dropping since the beginning of this year and now most of the coins are in oversold area. I believe market will recover in coming months but can not say exactly when it will rise back but apart from this I personally think market need some good positive news to boost up and I somehow agree with your points.
Some coins cannot be oversold as they're such trash they shouldn't have value in the first place. LTC and IOTA come to mind.
But the rest of the top 20 are pretty oversold IMO. We'll see a reversal at some point