Market Overview for Dego Finance/Tether (DEGOUSDT) on 2025-10-11

• Price plunged 69% from $1.15 to $0.298 before rebounding to close near $0.70.
• Momentum collapsed mid-session but recovered slightly toward end of 24-hour period.
• Volatility spiked sharply on 21:15 ET candle with 90% range and 4.9M volume.
• Divergence between price and turnover suggests potential washout or speculative activity.
• Key support levels at 0.675, 0.645, and 0.618 appear relevant for near-term direction.

Dego Finance/Tether (DEGOUSDT) opened at $1.15 on 2025-10-10 at 12:00 ET, hit a low of $0.033, and closed at $0.702 on 2025-10-11 at 12:00 ET. The pair recorded a 24-hour trading volume of 28,335,668.24 and a notional turnover of $19,907,319.09. The session was marked by extreme volatility and divergence between price and volume patterns.

Structure & Formations

The candlestick structure reveals a sharp bearish breakdown in the first half of the session, with a massive bearish candle on 21:15 ET that closed at 0.298—approximately 90% below the prior high. This candle was followed by a broad-based rebound, suggesting potential oversold conditions. Notable patterns include a bullish engulfing on 00:30–00:45 ET and a potential bearish harami on the earlier high. The price has tested the 0.684–0.696 range multiple times, suggesting a temporary equilibrium forming.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages are currently bearish, with price crossing above both in the final hours, suggesting short-term recovery. On the daily timeframe, a 200-period moving average would likely be well above current price action, indicating a longer-term bearish bias. The 50-period moving average is near the 0.702–0.714 range and may serve as a short-term ceiling if the price struggles to break through.

MACD & RSI

The MACD showed a deep bearish divergence during the collapse, with the line falling sharply while price found limited support in the second half. RSI bottomed around 15–20, indicating oversold conditions, and has since rebounded to 45–50, aligning with the price recovery. However, the RSI remains below 60, indicating that the bull case is still weak unless the pair can push above 0.725 and hold.

Bollinger Bands

Bollinger Bands expanded dramatically during the 21:15 ET crash, with price moving outside the lower band by over 2 standard deviations. In the final hours, price action has remained within the bands and is approaching the middle band. A break above the upper band would signal renewed bullish momentum, while a retest of the lower band could trigger renewed selling pressure.

Volume & Turnover

Volume spiked to 4.96 million during the 21:15 ET candle, coinciding with the largest price drop, indicating significant liquidation. However, turnover on that candle was relatively low (under $100,000), suggesting either low liquidity or a washout move. Later in the session, volume normalized but turnover remained inconsistent, hinting at potential speculative inflows or order fragmentation.

Fibonacci Retracements

Applying Fibonacci retracements to the major 1.15–0.298 swing, the 0.618 level aligns closely with the 0.684–0.696 cluster. The 38.2% retracement is near 0.775, which has not yet been tested but may serve as a near-term resistance level if the pair consolidates and bounces. On daily moves, the 0.618 retracement from prior highs aligns with 0.725–0.735, which could be the next resistance target if bulls regain control.

Backtest Hypothesis

Given the volatility and the observed patterns, a potential backtesting strategy could involve a short-term breakout approach, targeting the 0.618 Fibonacci level as a key support and entering a long position upon a bullish close above 0.685, with a stop loss placed below 0.675. If the pair can maintain above 0.685 for two consecutive candles and show increasing volume, the strategy would assume a 0.725 target with a 1.5% trailing stop. This approach could be tested over historical 15-minute data to evaluate its consistency during similar market conditions.