Market Overview for Dego Finance/Tether (DEGOUSDT)

• Price dropped to 1.547 on 22:45 ET before rebounding above 1.600
• Rebounded with strong volume in the 04:00–07:00 ET window
• RSI and MACD suggest fading momentum despite the rebound
• Bollinger Bands show moderate volatility with price near the upper band
• Key resistance at 1.672, support at 1.600

Dego Finance/Tether (DEGOUSDT) opened at 1.646 on 2025-10-21 12:00 ET, reached a high of 1.714, and a low of 1.547, closing at 1.648 by 12:00 ET on 2025-10-22. The total volume over 24 hours was 3,320,313.33 DEGO, with a notional turnover of ~$5,540,374.85.

The 20-period and 50-period SMAs on the 15-minute chart intersected during the overnight rebound, suggesting a temporary bullish shift. However, the 50-period MA remained above the 20-period MA, signaling a bearish bias in the short term. On the daily chart, the 50-period MA at 1.632, 100-period MA at 1.642, and 200-period MA at 1.628 all indicate a neutral-to-bullish alignment, with price currently at 1.648.

Structure & Formations

Dego Finance/Tether formed a bullish engulfing pattern near the 1.600 level early in the rebound, followed by a strong green candle on the 05:15 ET bar. Price then stalled at the 1.672–1.691 range, where a series of doji and narrow-range candles signaled indecision. A key support level appears to have been established at 1.600, with resistance forming at 1.672 and a secondary level at 1.691.

Moving Averages

On the 15-minute chart, the 20-period MA crossed the 50-period MA in a potential bullish crossover during the 04:30–07:30 ET rebound phase, but the signal faded after a brief continuation. The 50-period SMA on the daily chart is approaching the 1.632 level, acting as a psychological support zone. A break above the 200-period MA (1.628) could signal a broader bullish shift in sentiment.

MACD & RSI

The MACD on the 15-minute chart showed a weak bullish divergence during the rebound but failed to confirm a strong breakout. RSI bottomed out near 30 in the 22:30 ET hour, signaling oversold conditions, which were followed by a moderate rebound. However, RSI failed to reach overbought territory (above 70), suggesting momentum remains limited. Over the 24-hour period, RSI oscillated between 30 and 55, indicating a lack of conviction in either direction.

Bollinger Bands

Volatility expanded significantly during the 04:30–07:30 ET period as price moved from 1.605 to 1.671. Price currently resides near the upper Bollinger Band (1.671) on the 15-minute chart, while the daily band shows a wider range. A contraction in the Bollinger Bands is forming around the 1.648–1.668 zone, signaling a potential breakout or consolidation phase.

Volume & Turnover

Volume spiked during the rebound, particularly between 04:30 and 07:30 ET, with the highest volume candle (32,813.76 DEGO) appearing on the 05:15 ET bar. This suggests strong buying interest but not enough to break through the 1.672 resistance. Notional turnover peaked during the same window, reaching ~$53,136 on the 08:15 ET candle, indicating significant capital inflow into the pair. Price and volume aligned during the rebound, but the volume failed to confirm a breakout.

Fibonacci Retracements

Applying Fibonacci retracements to the 1.547–1.671 swing, the 61.8% level (1.623) acted as a key support, which was tested but held. The 78.6% retracement (1.648) is currently the price level and appears to be a consolidation zone. On the daily chart, the 38.2% retracement (1.648) and 61.8% retracement (1.652) could become key levels in the near term.

Backtest Hypothesis

To test the effectiveness of a momentum-based strategy on DEGOUSDT, a 1-day RSI-based signal could be implemented using the 14-period RSI with a 30 oversold threshold. Given the current data availability and the 15-minute nature of the candlestick dataset, a practical workaround would be to treat each 15-minute bar as a “trading day” and execute trades at the close of each bar. This approach would allow for a daily trading frequency while leveraging the high-frequency data.

Assuming RSI < 30 as a buy signal and RSI > 70 as a sell signal, a backtest could be run using a fixed position size (100% capital per trade, no compounding), with a starting capital of $100,000. Given the recent volatility and multiple RSI entries near 30–40, this strategy may capture short-term rebounds but risks false signals during range-bound conditions.