Market Overview for Dego Finance/Tether (DEGOUSDT)

• Price surged above 1.150, breaking a key resistance with strong volume.
• RSI climbed into overbought territory, suggesting potential near-term correction.
• Bollinger Bands widened significantly, reflecting increased volatility in the pair.
• A bullish engulfing pattern formed around 1.145, signaling short-term bullish momentum.
• High turnover in the final 15 minutes hints at accumulation or order flow shifts.

Dego Finance/Tether (DEGOUSDT) opened at 1.143 on 2025-10-08 at 12:00 ET and closed at 1.152 at the same time on 2025-10-09. The 24-hour high was 1.179, while the low was 1.132. Total volume was approximately 317,684.05, and total turnover (notional value) was around 367,916.83.

Structure & Formations

The candlestick pattern over the last 24 hours displayed a strong bullish bias. A notable bullish engulfing pattern emerged around 1.145 as prices reversed from a 1.144 low to a 1.150 high. A doji appeared around 1.135, signaling indecision, while a strong push above 1.150 confirmed a breakout from a key resistance level. Support levels at 1.142 and 1.135 appear to have held during pullbacks, while 1.160–1.170 could be the next key resistance levels.

Moving Averages

Short-term (15-min) moving averages suggest a bullish bias, with the 20SMA and 50SMA aligning above the 50-period level. On the daily chart, the 50DMA crossed above the 100DMA and remains above the 200DMA, indicating a continuation of the bullish trend. Price is currently trading above all key moving averages, suggesting a strong momentum setup.

MACD & RSI

MACD showed a bullish divergence with a positive crossover and expanding histogram, supporting further gains. RSI reached overbought territory above 75, indicating the need for a consolidation or short-term correction. However, strong volume in the final 15 minutes suggests buying pressure may persist, potentially extending the upmove.

Bollinger Bands

Volatility expanded significantly as the bands widened from a contraction phase around 1.135–1.145. Price has spent the final 6 hours trading above the upper band, suggesting a breakout scenario. This could mean a temporary continuation of the rally, but a pullback into the mid-band may signal a healthy consolidation phase.

Volume & Turnover

Volume was highest during the 22:00–04:00 ET window, particularly in the 3–5-hour window when the price surged above 1.150. Notional turnover also spiked during this time, confirming the price movement. A divergence appears in the final hour, with reduced volume and mixed candlestick behavior—possibly a sign of profit-taking or distribution.

Fibonacci Retracements

Applying Fibonacci to the key swing from 1.132 to 1.179, 1.152 aligns with the 61.8% level. A pullback to 1.142 (38.2%) could find support, while 1.164 (78.6%) may cap the next leg of the rally unless volume surges again. Daily moves also align with these levels, reinforcing the potential for a 1.160–1.170 target zone.

Backtest Hypothesis

A potential backtesting strategy would involve entering long positions on a bullish engulfing pattern formation above key resistance (1.145–1.150), with a stop-loss placed below the prior swing low (1.142). A take-profit could be set at the 61.8% Fibonacci level (1.152) or the upper Bollinger Band (1.160–1.170). The MACD and RSI divergence could act as early warnings for a reversal or consolidation phase.