Market Overview for Dego Finance/Tether (DEGOUSDT): Volatile 24-Hour Correction

• Price opened at $0.647 and closed at $0.63, with a high of $0.69 and a low of $0.624 over 24 hours.
• A strong bearish trend emerged in the last 6 hours, dropping nearly 6% from intraday highs.
• Volume spiked during the $0.69 peak but failed to sustain momentum, signaling potential exhaustion.
• Price action shows divergence between volume and price decline, hinting at possible short-term bottoming.
• RSI and MACD momentum indicators suggest overbought conditions reversed sharply into oversold territory.

Dego Finance/Tether (DEGOUSDT) opened at $0.647 on 2025-11-05 at 12:00 ET and closed at $0.63 the next day, reaching a high of $0.69 and a low of $0.624. Total volume for the 24-hour period was 5,782,466.53 DEGO, with a notional turnover of approximately $3,530,362. The pair experienced a sharp pullback in the final hours, with bearish momentum intensifying after a brief bullish breakout.

Structure & Formations

Price formed a bearish engulfing pattern at $0.676 to $0.672 and later a key bearish reversal pattern at $0.663, indicating short-term capitulation. A doji at $0.662–$0.664 marked a potential turning point, suggesting indecision and possible exhaustion after the earlier bullish attempt. Key support levels are forming around $0.636 and $0.624, with $0.65 acting as a dynamic resistance-turned-support.

Moving Averages

On the 15-minute chart, price recently closed below the 50-period SMA (~$0.65), while the 20-period SMA is also bearish. On the daily timeframe, the 50-day SMA (~$0.64) may act as a pivot, with the 200-day SMA (~$0.665) serving as a medium-term resistance. Price may test the 100-day SMA (~$0.655) in the near term.

MACD & RSI

MACD turned negative in the last 2 hours, signaling bearish momentum. RSI dropped into oversold territory (<30) after a sharp correction. While this could indicate a short-term rebound is in play, a close back above the 50 RSI line may be necessary to confirm a near-term reversal.

Bollinger Bands

Volatility expanded significantly during the breakout to $0.69, with the upper band touching $0.69 and the lower band at $0.624. Price is currently sitting near the lower Bollinger band, which may act as a short-term floor unless buyers step in to widen the bands again.

Volume & Turnover

Volume surged during the $0.69 high but significantly declined during the subsequent drop, indicating bearish exhaustion. However, recent volume has picked up slightly on the pullback, suggesting possible accumulation at lower levels. Notional turnover also dipped as price dropped, reinforcing bearish sentiment.

Fibonacci Retracements

On the 15-minute swing, a 61.8% retracement level is at $0.635, which aligns with a key support level identified earlier. On the daily chart, the 38.2% and 61.8% retracement levels (~$0.63 and ~$0.615) may act as critical psychological and technical inflection points.

Backtest Hypothesis

Given the lack of RSI data for DEGOUSDT, a backtest can proceed by first downloading the raw price series and calculating RSI locally. Once RSI values are generated, a dual strategy of RSI divergence and volume-confirmation can be tested: for example, a long entry on RSI bottom divergence and increasing volume, or a short entry on RSI top divergence and declining volume. This approach can be backtested against the observed 15-minute OHLCV data for model calibration.