【arbitrage bot bybit】Dogecoin Weekly RSI Cools Off with Wave 2 of Cycle 3: Analyst Predicts Largest Moves Ahead

Dogecoin (DOGE) enthusiasts may be arbitrage bot bybitgearing up for what some analysts call a potentially explosive move in the meme coin’s price.

According to a recent analysis shared by “Bitcoindata21” on X, DOGE’s weekly Relative Strength Index (RSI) has cooled off after reaching overbought levels. The analyst noted that this signaled the conclusion of “wave 2” in its current market cycle.

Based on this observation, the analyst suggests that the most significant price movements, possibly leading to new all-time highs, could be on the horizon.

Dogecoin RSI Cooling Signals Potential Upside

The RSI, a widely used momentum indicator, is currently sitting at 61.84 on the weekly timeframe. This represents a dip from previous peaks near 94 during Dogecoin’s major rallies early last month.

Historically, DOGE has seen its most substantial price surges following similar RSI retracements, as highlighted in the chart shared by the analyst.

The chart notes key moments in Dogecoin’s history, including previous instances when RSI levels skyrocketed, coinciding with explosive price movements. Data confirms that the 2017 and 2021 rallies each followed a period of RSI cooling.

Dogecoin weekly chart showing RSI information