Market Overview: Dego Finance/Tether (DEGOUSDT) - 24-Hour Summary as of 2025-10-06

• Price dipped to 1.094 before rebounding to close near 1.128; bearish trend interrupted
• RSI signaled oversold conditions, sparking a rebound, but momentum remains weak
• Volume surged during the 22:15–22:30 ET selloff but waned during the rally
• Bollinger Bands showed a narrow range earlier, followed by a breakout and retrace
• Fibonacci levels suggest support at 1.118 and 1.104 as potential turning points

Dego Finance/Tether (DEGOUSDT) opened at 1.125 at 12:00 ET − 1, reaching a high of 1.144 and a low of 1.093 before closing at 1.126 as of 12:00 ET. Total volume was 1.236 million DEGO, with turnover of ~$1.15 million. The 24-hour period showed a sharp correction followed by partial recovery.

Structure & Formations

Price experienced a bearish breakdown in the early hours of the session, forming a sharp bearish candle with a long lower wick around 00:00–01:45 ET, followed by a bullish recovery from 01:45 onwards. A key support level at 1.118 was tested multiple times and held, suggesting short-term resilience. A bullish engulfing pattern was observed between 03:30–04:15 ET, with price closing near the high of the pattern, indicating a potential short-term reversal. However, the formation failed to confirm a strong reversal as price remained within a tight range after 06:30 ET. A bearish doji formed at 02:00–02:15 ET, signaling indecision.

Moving Averages and MACD/RSI

The 20-period and 50-period moving averages on the 15-minute chart were both bearish, with the 20 MA crossing below the 50 MA, indicating a bearish bias. The MACD line crossed into negative territory and remained there, signaling bearish momentum. However, the RSI dipped into oversold territory below 30 during the early hours, triggering a recovery. This suggests a potential bounce, although without a clear breakout above the 1.130–1.135 range, a retest of the 1.118 level remains likely.

Bollinger Bands and Fibonacci Retracements

Bollinger Bands showed a notable contraction between 04:00–05:00 ET, followed by an expansion as price broke out to the upside. Price closed above the upper band during the 01:45–02:15 period before retracing to the middle band. Fibonacci retracement levels applied to the 1.144–1.093 swing identified key support at 1.118 (61.8%) and 1.104 (78.6%). Price has tested and bounced from the 1.118 level multiple times, suggesting it could act as a short-term floor.

Volume and Turnover

Volume surged during the 22:15–22:30 ET selloff, with a high of 111,424 DEGO traded and a notional value of ~$123,000, indicating bearish conviction at the time. However, the subsequent rebound from 01:45–04:15 ET occurred on relatively lower volume, suggesting a weaker bullish conviction. A divergence emerged between price and volume during the early morning rally: while prices rose, volume remained muted. This weak confirmation could indicate a possible retest of the 1.118–1.104 range.

Backtest Hypothesis

Applying a backtesting strategy that combines RSI (14) and Fibonacci retracement levels could be effective in this context. When RSI dips below 30 and price is near a key Fibonacci support level (e.g., 61.8%), a long entry with a stop loss below the recent swing low could be considered. Given the recent price behavior, this setup could offer a risk-reward profile of 1:2 or better. For example, with an entry at 1.118 and a target at 1.138, traders may look to capitalize on a potential rebound from strong support with a stop placed below 1.108 to manage risk.