Market Overview for Dego Finance/Tether (DEGOUSDT) – October 31, 2025

• Dego Finance/Tether (DEGOUSDT) closed near 0.790 after a sharp post-ET rally, showing bearish reversal patterns in early sessions.
• A 15-minute engulfing pattern and bearish momentum in RSI suggest oversold conditions later in the day.
• Volatility expanded sharply during the NY-Asia overlap, with volume surging over 1.6 million DEGO in one 15-minute period.
• The price tested key Fibonacci levels, with 0.773–0.795 acting as a key range for the next 24 hours.
• Total 24-hour volume was ~5.4 million DEGO, with turnover reaching ~$4.3 million, indicating moderate activity.

Dego Finance/Tether (DEGOUSDT) opened at 0.806 at 12:00 ET–1 and closed at 0.790 by 12:00 ET, with a daily high of 0.941 and a low of 0.763. Total 24-hour volume reached 5.4 million DEGO, translating to a notional turnover of approximately $4.3 million. The price experienced a significant intra-day rally between 07:30–08:15 ET, reaching a high of 0.917, followed by a rapid consolidation and pullback into key Fibonacci levels.

The 15-minute chart showed strong bearish momentum, particularly after 20:30 ET, with a bearish engulfing pattern and a long lower shadow at 20:45 ET signaling a potential reversal. Support at 0.773–0.780 held multiple times, while resistance levels at 0.790–0.795 were frequently tested. On the daily chart, the 50- and 200-period moving averages suggest a neutral to slightly bearish bias, with the price currently below the 200SMA, indicating a potential bearish continuation scenario.

MACD showed a bearish crossover after the midday peak, confirming the reversal, while RSI hit overbought territory (above 70) during the 07:00–08:15 ET surge, followed by a sharp decline into oversold territory (below 30) by 21:00 ET. This suggests a strong momentum shift. Bollinger Bands expanded during the rally, with price reaching the upper band at 0.917 before retracting. Volatility has since normalized, with the price consolidating within the bands.

Key Fibonacci retracement levels on the 15-minute swing from 0.763 to 0.941 are at 0.797 (38.2%), 0.787 (50%), and 0.776 (61.8%). The price found temporary support at the 50% level (0.787) on multiple occasions. Volume analysis revealed a clear divergence in the final hour, where price rose but volume declined, signaling weakening bullish conviction. The market is now in a period of consolidation, with 0.773–0.795 forming a critical range that may determine the next directional move.

Backtest Hypothesis
The recent price behavior of DEGOUSDT suggests a potential backtesting opportunity for a momentum-based strategy. For example, an RSI-based strategy using 10-day overbought levels (RSI > 70) and holding for 10 days could be evaluated using this data. However, the backtest would require access to historical RSI data for the DEGOUSDT pair, which is not available in the current dataset. If RSI data can be retrieved for this pair or a similar token, a 10-day-hold strategy could be tested from 2022-01-01 to today. This strategy could then be compared to the current setup, where RSI has moved from overbought to oversold territory, potentially offering a buy signal.