Market Overview for Dego Finance/Tether (DEGOUSDT): Volatile 24-Hour Drop Triggers Key Levels

• DEGOUSDT dropped 11.2% over 24 hours, hitting a low of $0.733 amid declining volume and bearish momentum.
• A bearish divergence appears between price and RSI, suggesting potential exhaustion in the downward move.
• Price broke below key 0.78 support, triggering Fibonacci retracement levels at 0.75 and 0.73 as critical near-term targets.
• Bollinger Bands expanded significantly during the selloff, confirming heightened volatility and risk of a rebound or breakdown.
• Volume spiked during the late-night plunge to 0.733 but has since declined, indicating fading seller aggression.

The Dego Finance/Tether pair (DEGOUSDT) opened at $0.799 at 12:00 ET on 2025-11-02 and closed at $0.759 by 12:00 ET on 2025-11-03, with a high of $0.815 and a low of $0.733. Total volume for the 24-hour period was 4.21 million contracts, and notional turnover reached $3.38 million. Price action displayed a sharp bearish bias after a consolidation phase, punctuated by a key break below the 0.78 support level.

Structure and key levels revealed a bearish bias as price tested and failed to hold above 0.78, a level that had previously acted as a pivot. A notable bearish engulfing pattern formed during the initial breakdown. Resistance remains at 0.798 and 0.804, with support now at 0.756, 0.736, and the critical 0.733 level. A doji at 0.733 suggests a potential short-term pause, but a close below could trigger further downside to 0.716.

On the 15-minute chart, the 20-period and 50-period moving averages are both bearish, with the price well below both. On the daily chart, the 50-period MA is at 0.792 and the 200-period MA at 0.803, suggesting a bearish divergence. The RSI has entered oversold territory at 29, hinting at potential short-term reversal or a continuation if bearish momentum remains strong. The MACD is negative with a bearish crossover, reinforcing the downward trend.

Bollinger Bands widened during the selloff, especially between 00:00 and 06:00 ET, confirming elevated volatility. Price closed near the lower band at 0.759, indicating bearish pressure. A contraction in the bands might signal a potential reversal, but given the RSI divergence and volume behavior, a continuation is more likely. Key Fibonacci retracement levels from the high at 0.815 to the low at 0.733 now include 0.769 (38.2%) and 0.756 (61.8%), which could offer strategic levels for traders to monitor.

The bearish divergence between price and RSI, along with the key break below 0.78, suggests a continuation lower is more probable than a rebound in the short term. However, a close above 0.785 could trigger a test of the 0.796–0.804 resistance zone. Investors should watch for a reversal pattern at 0.733 or a break below 0.716 for confirmation of a new trend phase. The risk of a further selloff remains high, especially if volume increases with the next leg down.

Backtest Hypothesis

A potential backtest could focus on a short-bias strategy that enters a sell position when price breaks below the 0.78 support level with a confirmation candle that closes below 0.775. The stop-loss is placed at 0.796, while the target is 0.756 (Fibonacci 61.8%). This setup would align with the bearish engulfing pattern and RSI divergence seen on the 15-minute chart. A trailing stop could be activated at 0.763 to capture potential continued downward momentum. The volume spike observed during the break supports the strategy’s validity, as it confirms a strong seller-driven move.