DEGOUSDT Market Overview

• Price declined 2.5% on 24h volume of $1.23M, signaling bearish momentum.
• A key support level formed near 1.125 with a failed rebound attempt.
• Volatility expanded after 06:00 ET, with a high-low range of 4.3%.
• MACD turned negative, and RSI approached oversold territory at 29.
• Volume spiked during the drop below 1.13, indicating increased bear pressure.

Dego Finance/Tether (DEGOUSDT) opened at 1.136 on 2025-10-06 12:00 ET and closed at 1.128 by 12:00 ET the next day, with a high of 1.143 and a low of 1.091. Total 24h volume was 862,703.42 DEGO, and notional turnover reached $1.23M. Price action reflected bearish exhaustion amid increased volatility and diverging volume.

Structure & Formations

Price formed a bearish engulfing pattern near 1.136, followed by a long lower shadow at the daily low of 1.091, indicating strong bear pressure. A key support level appears to be forming around 1.125, which has been tested twice without a clear rebound. A potential bullish reversal may emerge if price holds above this level and closes above 1.135.

Moving Averages

On the 15-minute chart, price is below both the 20-period and 50-period SMAs, reinforcing a short-term bearish bias. The 20SMA is trending downward, crossing the 50SMA from above, which could signal a bearish continuation. On the daily chart, the 50- and 200-period SMAs are converging, suggesting a possible pivot point ahead if the trend reverses.

MACD & RSI

The MACD histogram has turned negative and is contracting, signaling waning bear momentum. RSI is in oversold territory at 29, suggesting a potential rebound could be near. However, divergence between price and RSI during the recent decline suggests caution—bulls must show conviction above 1.13 to confirm a reversal.

Bollinger Bands

Price broke below the lower Bollinger Band at 1.125, confirming heightened volatility and a bearish breakout. The band width expanded significantly during the sharp decline, indicating increased uncertainty. A pullback to the middle band (currently at ~1.13) could offer a strategic entry point for short-term traders.

Volume & Turnover

Volume spiked to over 140k DEGO during the 15-minute candle ending at 11:15 ET as price dropped to 1.113, indicating strong bear pressure. However, notional turnover during this period was only $160k, suggesting reduced conviction from larger participants. Divergence between volume and turnover implies the sell-off may be exhausting.

Fibonacci Retracements

From the recent swing high at 1.143 to the swing low at 1.091, key Fibonacci levels include 38.2% at 1.126 and 61.8% at 1.113. Price stalled at the 38.2% level for multiple hours, indicating a possible short-term consolidation zone. A close above 1.128 could invalidate the bearish case and retest 1.135.

Backtest Hypothesis

The backtest strategy involves entering a short position when price breaks below the 20-period SMA and confirms with a close below the lower Bollinger Band, with a stop-loss placed above the most recent swing high. Targets are based on Fibonacci retracement levels and key support thresholds. Given today’s price action, the 1.125–1.113 range offers a valid target zone for this approach. Traders should monitor volume and divergence to confirm trend sustainability.