DEGO +641.84% in 24 Hours Amid Unprecedented Short-Term Surge

On SEP 8 2025, DEGO surged by 641.84% within 24 hours to reach $1.338, marking the largest single-day gain in its recent history. Over a seven-day period, the token gained an additional 684.17%, while posting a 641.84% increase in the last 30 days. Despite these sharp gains, DEGO is down 5,252.74% over the past year, highlighting extreme volatility and contrasting long-term performance.

The surge came amid a broader market upswing, with DEGO capitalizing on a renewed wave of interest in speculative assets. The token's rapid rise appears to be driven by a combination of social media traction and limited supply dynamics, though no major project updates or partnerships were announced. Traders have noted that the momentum is largely retail-driven, with little institutional involvement evident in the market data.

Technical indicators suggest the recent surge has pushed DEGO into overbought territory. The Relative Strength Index (RSI) has moved beyond the 70 threshold, signaling potential exhaustion of upward momentum. Similarly, the Moving Average Convergence Divergence (MACD) has shown a narrowing histogram, suggesting a slowdown in buying pressure. These signals are often interpreted by traders as a cautionary sign ahead of a potential pullback.

Despite the overbought conditions, sentiment remains bullish among short-term traders. A recent on-chain analysis indicates that a significant portion of the recent inflow has been from new addresses, suggesting sustained interest. However, this also raises concerns about the sustainability of the rally, as inexperienced participants may be more prone to panic selling in the event of a reversal.

Backtest Hypothesis

To evaluate the viability of the recent trend, a backtesting strategy was designed using historical data. The strategy is based on a breakout model, triggered when DEGO closes above a 50-period moving average. Stop-loss and take-profit levels are set at 10% and 20% from the entry point, respectively, with a maximum of three consecutive losing trades before the system exits. The backtest aims to determine whether similar conditions in the past would have generated profitable outcomes under the same rules.