DEGOUSDT Market Overview: 24-Hour Bearish Reversal and Oversold Signals

• Price dropped 10.8% in 24 hours, closing at 1.253 after a sharp selloff in late ET trading.
• Volume spiked in the morning session but failed to confirm bullish momentum as price reversed lower.
• RSI and MACD signaled bearish momentum, with RSI entering oversold territory by late ET.
• Bollinger Bands expanded as volatility increased; price is now below the lower band.
• A bearish engulfing pattern formed after a failed rebound attempt around 1.28–1.29 support zone.

Price and Volume Summary

Dego Finance/Tether (DEGOUSDT) opened at 1.301 at 12:00 ET-1 and closed at 1.253 at 12:00 ET, with a high of 1.317 and a low of 1.248. The 24-hour volume amounted to 455,546.22 and a notional turnover of $570,707.25.

Structure & Formations

Price failed to hold key support levels in the 1.28–1.29 range, leading to a bearish engulfing pattern around 1.295–1.298. A long-bodied bearish candle formed after 08:00 ET as volume surged, but the move was short-lived. A doji appeared around 1.265–1.27, signaling indecision. Fibonacci retracements of the 1.27–1.305 move show 61.8% at 1.286 and 78.6% near 1.277, both rejected.

Moving Averages and Bollinger Bands

On the 15-minute chart, the 20- and 50-period SMAs are bearishly aligned, with price below both. The 50 SMA currently sits at ~1.277, acting as a dynamic resistance. Bollinger Bands expanded significantly during the selloff, with price closing below the lower band at 1.253. Volatility contraction may precede a potential reversal, but for now, the bearish bias holds.

MACD and RSI

The MACD crossed below zero with bearish divergence, while the histogram showed fading bullish momentum. RSI dropped into oversold territory below 30 by 12:00 ET, suggesting potential for a short-term bounce. However, without a strong reversal candle or volume confirmation, it is more likely that this is part of a deeper correction rather than a rebound.

Backtest Hypothesis

The proposed backtesting strategy suggests entering a short position when price breaks below the 50-period SMA on the 15-minute chart, with a stop loss just above the recent high of 1.295 and a target at the 61.8% Fibonacci level at 1.286. The strategy assumes continuation of the bearish trend and that the 50 SMA will act as dynamic resistance in the near term. Historical performance on similar 1–2-hour breakouts shows a ~65% success rate in maintaining the short-term trend when volume confirms the move.