Market Overview for Dego Finance/Tether (DEGOUSDT)

• Price fell to 1.116 after a sharp 15-minute drop from 1.272.
• Volatility surged as volume spiked above 1.1M at market lows.
• RSI hit oversold levels, suggesting a potential near-term bounce.
• Bollinger Bands expanded significantly during downward move.
• MACD turned negative with bearish divergence, signaling continued bear momentum.

Dego Finance/Tether (DEGOUSDT) opened at 1.344 on 2025-09-26 12:00 ET, surged to a high of 1.428, and dropped to a low of 1.116 before closing at 1.122 at 12:00 ET on 2025-09-27. The 24-hour volume was approximately 11,376,590 and the notional turnover reached 14,609,769.06.

The structure of the candlestick chart reveals a sharp bearish breakdown from the 1.428 high to the 1.116 low, with a critical support zone forming around the 1.116–1.118 range. This level has seen multiple bounces and heavy volume, suggesting it could act as a short-term floor. Key resistance lies at 1.172 and 1.238, while further support is expected near 1.107 and 1.109. A notable bearish engulfing pattern occurred around 02:30 ET, followed by a long lower shadow at the low point, indicating buyers stepped in briefly at the bottom. A doji formed around 03:45 ET, signaling indecision in the market after the initial sharp decline.

The 20 and 50-period moving averages on the 15-minute chart show a strong bearish crossover, with the 50-period MA well above the 20-period MA. On the daily chart, the 50, 100, and 200-period moving averages are all in bearish alignment, confirming the larger downward trend. The MACD has turned sharply negative with bearish divergence, suggesting bear momentum is still in control. The RSI dropped to 22 at the 1.116 low, hitting oversold territory, which could trigger a near-term bounce but not necessarily a reversal. Bollinger Bands expanded significantly during the fall, indicating heightened volatility, with the price currently sitting near the lower band, suggesting the market could be seeking a floor.

Volume spiked dramatically during the 02:30–03:45 ET timeframe, confirming the bearish breakdown, while notional turnover also surged. However, after hitting the low, volume declined slightly despite the price bouncing off the 1.116 level, indicating some caution in the market. Fibonacci retracements from the 1.428 high to the 1.116 low show key levels at 1.184 (38.2%) and 1.250 (61.8%), both of which could serve as resistance if the market recovers. The 1.143–1.172 range is currently testing for a potential short-term rebound.

Backtest Hypothesis: A potential strategy could involve entering long positions when price closes above the 38.2% Fibonacci retracement (1.184) with RSI above 50 and volume increasing, while short positions could be considered if the 61.8% retracement (1.250) fails with bearish divergence in the MACD. Stop-loss levels would be placed below the 1.116–1.118 support. Given the current positioning near key Fibonacci levels and RSI in oversold territory, a short-term bounce seems plausible, but the larger bearish trend remains intact. Investors should remain cautious of any divergence in price and volume and be prepared for a resumption of the downward move should support fail.