Dego Finance/Tether Market Overview

• Price rose from 1.101 to 1.114, showing strong bullish momentum despite late consolidation.
• Key resistance at 1.114–1.119 was tested twice, with a final push to 1.121.
• Volatility expanded after 18:00 ET, with volume spiking on the 1.114–1.119 range.
• RSI indicated overbought conditions, while MACD confirmed positive momentum.
• Bollinger Bands showed contraction early, followed by expansion and a breakout attempt.

Dego Finance/Tether (DEGOUSDT) opened at 1.101 on 2025-10-02 at 12:00 ET and closed at 1.11 at 12:00 ET on 2025-10-03. The pair reached a high of 1.121 and a low of 1.101 in the 24-hour period. Total volume was 389,829.8, and turnover was approximately 429,664.13 USD.

Structure & Formations

The price chart reveals a bullish trend with a strong support level forming near 1.101–1.103, reinforced by multiple candle closes and a bearish reversal pattern at 1.108–1.109. A notable bullish engulfing pattern was observed around 19:30–20:00 ET, pushing the price from 1.114 to 1.118. A key resistance level at 1.113–1.119 was tested multiple times, with the price peaking at 1.121 before consolidating. A doji at 1.112–1.113 suggests indecision, while a potential continuation pattern is forming after the last bullish push.

Moving Averages

On the 15-minute chart, the price moved above both the 20-period and 50-period moving averages, indicating bullish momentum. On the daily chart, the 50-period MA is at approximately 1.110, the 100-period at 1.108, and the 200-period at 1.106, suggesting a medium-term bullish bias. The price closed above the 50- and 200-day MA, which could reinforce the trend if the 1.114–1.119 range holds.

MACD & RSI

The MACD showed a positive crossover and bullish divergence, with both the line and signal line above zero after 18:00 ET. RSI reached overbought territory (above 70) at 1.119–1.121, indicating a possible short-term correction or continuation. The RSI remains above 50, suggesting continued bullish momentum, though traders should watch for a pullback below 1.108 as a potential bearish signal.

Bollinger Bands

Bollinger Bands showed a period of contraction between 1.109 and 1.113 before expanding, signaling a breakout attempt. The price traded near the upper band at 1.121, suggesting overbought conditions and a potential pullback. The middle band was at approximately 1.111, indicating that the price may find support or resistance in that zone.

Volume & Turnover

Volume spiked significantly between 19:30 and 20:00 ET, coinciding with a strong move from 1.114 to 1.118, reinforcing the bullish breakout. Turnover was also elevated during this time, suggesting strong liquidity and market participation. A divergence between price and volume was observed around 01:15–01:30 ET, where price declined but volume remained high, hinting at potential accumulation.

Fibonacci Retracements

Key Fibonacci levels on the 15-minute swing from 1.101 to 1.121 include 38.2% at 1.109 and 61.8% at 1.116. The price tested the 61.8% level before consolidating, suggesting it may retest these levels before breaking out or correcting. On the daily chart, the 61.8% retracement of the previous bearish move is at 1.114, aligning with recent resistance.

Backtest Hypothesis

The backtest strategy involves using a combination of RSI divergence and volume confirmation to enter long positions. Specifically, a long entry is triggered when RSI forms a bullish divergence (price lower low, RSI higher low) and volume increases on the second lower low, indicating buying pressure. Stops are placed below the most recent swing low, and take-profit levels are set at the 38.2% and 61.8% Fibonacci extensions. This strategy aligns with today’s observed price action, where a bullish divergence in RSI and volume spike at 19:30–20:00 ET provided a valid long setup. Given the current technical environment, this approach could be effective in capturing continuation moves, provided the price remains above 1.108.