Bitcoin's recent all-time high triggers overbought conditions for eCash (XEC) and Dent (DENT). Potential retracement expected in the market. Analysis based on CoinGlass's Relative Strength Index (RSI) heatmap.

Over the recent days, the cryptocurrency sphere witnessed Bitcoin (BTC) achieving record-breaking highs, while meme coins took center stage as top performers for the week. A prevailing sense of euphoria dominated the market, leading to concerns that certain cryptocurrencies may have become overbought.

Meanwhile, some other projects experienced a loss of momentum as Bitcoin indicated a potential price correction after encountering historical resistance at $69,000.

Against this backdrop, Finbold sought insights from CoinGlass and analyzed data from its Relative Strength Index (RSI) heatmap. Significantly, a multitude of cryptocurrencies currently exhibit an overbought status, with two of them showing a potential sell signal, anticipating a short-term retracement.

eCash (XEC) - A Possible Overbought Scenario

Specifically, eCash (XEC) stands out with the highest daily and weekly RSIs among its peers. According to CoinGlass's data, XEC is overbought in both the daily and weekly time frames, registering 89.36 and 79.27 index points, respectively.

Curiously, eCash is a direct fork from Bitcoin, experiencing a notable 53.57% surge in the last seven days, reaching $0.00006892, following Bitcoin's lead. However, a retracement is plausible if Bitcoin proceeds with its anticipated correction, potentially dipping as low as $50,000.

It's worth noting that eCash holds a market cap of $1.34 billion at its current prices, with a circulating supply of 19.65 trillion XEC.

Sell Signal for Dent (DENT)

Secondly, Dent (DENT), a low-cap cryptocurrency with a market value of $220 million, is also signaling an overbought status. DENT has a daily RSI of 75.51 and a weekly RSI of 78.32, indicating a potential sell-off if momentum weakens.

Essentially, Dent is an ERC-20 token operating on the Ethereum (ETH) network, designed for a digital mobile operator startup. DENT is currently trading at $0.002243, with weekly gains exceeding 12%.

However, it's crucial to note that an overbought RSI does not guarantee a price crash or trend reversal. The cryptocurrency market remains highly volatile, with projects often responding swiftly to news and relevant events, heavily influenced by whale activities.