Market Overview for Dego Finance/Tether (DEGOUSDT)

Summary
• Price fell from 0.726 to 0.674, closing at 0.698 on 2025-11-04.
• Strong bearish momentum emerged with RSI near oversold levels.
• Volatility expanded with Bollinger Bands widening late in the session.
• Turnover spiked above 87,878.93 at 17:00 ET as price dropped to 0.674.
• Key support tested at 0.67–0.68 as bearish engulfing patterns formed.

Dego Finance/Tether (DEGOUSDT) opened at 0.723 on 2025-11-03 at 12:00 ET and closed at 0.698 on 2025-11-04 at 12:00 ET. The 24-hour period saw a high of 0.727 and a low of 0.672. Total volume was 11,253,719.03, and total turnover was 7,806,633.89. Price formed bearish engulfing patterns and tested key support levels.

Structure & Formations

Price action revealed bearish bias throughout the session, particularly from 05:45 ET onward, as a sharp decline from 0.696 to 0.672 in the candle ending at 17:00 ET showed a large bearish engulfing pattern. Earlier in the session, between 22:00 and 02:00 ET, price showed signs of consolidation around 0.710–0.715, but failed to hold above 0.720. This consolidation was later broken to the downside, confirming bearish momentum. A significant intraday support level was tested at 0.67–0.68 and was partially respected, although the price closed slightly above it.

Moving Averages

On the 15-minute chart, the 20-period moving average was consistently above the 50-period MA, with price staying below both, confirming a bearish bias. On the daily timeframe, the 50-period MA was above the 100- and 200-period MAs, and price closed below all three, indicating further bearish alignment across timeframes.

MACD & RSI

MACD turned negative as of 05:45 ET and remained bearish, with the histogram showing expanding bearish momentum through the session. RSI dropped from 50 to as low as 30, nearing oversold territory, although a reversal did not occur. This suggests bearish exhaustion may be near, but buyers have yet to respond decisively.

Bollinger Bands

Volatility expanded in the final hours of the session, with the upper band peaking at 0.708 and the lower band falling to 0.672. Price closed near the lower band, indicating a strong bearish move into the range’s floor. The expansion in Bollinger Band width confirmed heightened volatility, particularly between 05:45 and 17:00 ET.

Volume & Turnover

Volume increased from 100,000 to over 878,789.3 at 17:00 ET, coinciding with the largest price drop of the session. Turnover also spiked, reflecting increased selling pressure. The divergence between price and volume was not significant, as the large volume was in line with the price action, reinforcing the bearish move. A volume spike at 11:15 ET also indicated a prior resistance break at 0.705, which failed to hold.

Fibonacci Retracements

Applying Fibonacci retracement levels to the recent 15-minute swing from 0.727 to 0.672, the 61.8% level was at 0.699, near the session's closing price of 0.698. This suggests price may find temporary support at the 61.8% retracement. On a daily timeframe, the 38.2% retracement level from the recent high at 0.727 was at 0.702, which was tested and failed. The 61.8% daily retracement level is at 0.686, currently under pressure.

Backtest Hypothesis

To validate the bearish signal identified through the engulfing pattern and oversold RSI, a backtest could be conducted using raw DEGOUSDT OHLC data. A “Bullish Engulfing” signal detection module could be implemented locally, triggering long positions at the close of the engulfing candle and exiting after a 24-hour holding period. Given the recent bearish action, a similar “Bearish Engulfing” strategy may provide a more relevant test. Using historical data from 2022-01-01 to 2025-11-04, this approach could quantify the efficacy of using candlestick patterns in a high-volatility, low-cap asset like DEGOUSDT.