Dogecoin Kicks Off Counter-Trend Rally, “Rose Alone While Bitcoin Fell”

▲ Bitcoin (BTC) and Dogecoin (DOGE)

Dogecoin (DOGE) has begun to show differentiated price action amid the broader market downturn, displaying relative strength against Bitcoin (BTC).

On February 23 (local time), crypto analyst Surf stated through a weekly chart analysis that Dogecoin is showing early signs of outperforming Bitcoin. While Bitcoin fell 2.13% from the previous day and struggled around the $65,000 level, Dogecoin rose 0.52%, demonstrating a contrasting trend. This price divergence suggests a possible rotation of capital into the meme coin market and is fueling investor optimism.

The key to this analysis lies in changes in the Relative Strength Index (RSI). According to the DOGE/BTC weekly chart shared by Surf, Dogecoin’s price remains compressed within a downtrend, but the RSI has been gradually rising and is pressing against downward resistance. In technical analysis, a rising RSI amid declining prices indicates weakening selling pressure and is generally considered a leading signal that often precedes an actual price breakout.

Surf emphasized the importance of the weekly close, assessing that the current setup is far more solid than before. Weekly closing prices are considered more reliable than daily volatility and serve as a measure of sustained buying interest. If the RSI decisively breaks above its downward resistance line, Dogecoin could fully escape its downtrend against Bitcoin and enter a full-fledged reversal rally.

Currently, Dogecoin is trading around $0.09606, recovering the previous day’s losses and turning positive. In contrast, Bitcoin remains in bearish territory, widening the performance gap between the two assets. However, for this relative strength to continue, Bitcoin’s price must find stability above a certain level. If Bitcoin experiences a sharp additional decline, risk-off sentiment could intensify, potentially erasing Dogecoin’s recent gains.

Amid ongoing market uncertainty, Dogecoin is forming its own momentum and preparing for a new upward cycle. Market attention is now focused on whether subtle movements in the RSI will serve as the trigger for a major price surge.

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