Market Overview for Dego Finance/Tether USDt (DEGOUSDT)

• Price surged from $1.234 to $1.288 during the 24-hour period, forming a bullish continuation pattern.
• Momentum showed mixed signs with RSI peaking near 65 and MACD confirming the move.
• Volatility expanded, with Bollinger Bands widening and turnover spiking after 05:00 ET.
• Key support and resistance levels were retested, indicating accumulation and distribution dynamics.
• High volume rallies confirmed the strength of the late-day breakout, but overbought conditions may lead to pullbacks.

Dego Finance/Tether USDt (DEGOUSDT) opened at $1.243 on 2025-09-04 at 12:00 ET and closed at $1.276 on 2025-09-05 at 12:00 ET, hitting a high of $1.294 and a low of $1.234. Total volume was 223,769.19, and notional turnover reached $278,375.03 over the 24-hour window.

The 15-minute candlestick chart reveals a bullish bias, with a clear retest of key support at $1.24 and subsequent breakout through resistance at $1.27. A bullish engulfing pattern emerged around 05:00 ET when price surged from $1.265 to $1.276. A doji appeared near the high of the session at $1.294, hinting at potential exhaustion.

Resistance levels of note include $1.276 (breakout level) and $1.285 (congestion area), while $1.264 and $1.252 acted as strong supports. The 20-period moving average (SMA) on the 15-minute chart crossed above the 50-period SMA, signaling a shift in momentum. Daily 50-period and 200-period SMA suggest a mixed trend, with price currently trading above the 50 SMA but below the 200 SMA.

The MACD crossed above the signal line with increasing positive divergence, affirming the bullish momentum. RSI showed a strong reading in the overbought zone (70+) after 07:00 ET, raising the probability of a near-term pullback. Bollinger Bands expanded after 05:00 ET, indicating a rise in volatility. Price hovered near the middle band in the final hours, suggesting a possible consolidation phase.

Fibonacci retracements highlighted key levels during the session’s swing from $1.234 to $1.294. The 61.8% retracement at $1.276 aligned with the breakout and close, suggesting a strong area for further accumulation or resistance. The 38.2% retracement at $1.265 acted as a key support zone.

Volume and turnover showed clear confirmation of bullish momentum post 05:00 ET, with high-volume spikes at key inflection points. However, the volume waned slightly during the final consolidation phase, indicating that the buying pressure may not be fully sustained. No major divergence between price and volume was observed, which supports a continued bullish bias for now.

Looking ahead, DEGOUSDT could face a test at $1.285–$1.290, with a potential pullback toward $1.265–$1.270 if the market shows signs of profit-taking. Traders should monitor RSI for overbought conditions and MACD for a potential bearish crossover to time entries or exits.

Backtest Hypothesis

The suggested backtesting strategy focuses on breakout trading with Fibonacci retracement confirmation and RSI filtering. A buy signal would trigger on a confirmed close above the 61.8% retracement level, with RSI confirming momentum above 55 and MACD in bullish territory. A sell signal would be triggered if the price fails to hold above the 50-period SMA or if RSI drops below 45.

This approach would require a stop-loss below the previous swing low (e.g., $1.265) and a take-profit at the next Fibonacci level or resistance (e.g., $1.285). The strategy appears well-aligned with the observed price behavior during the session and could be suitable for day traders or swing traders seeking directional bias with defined risk management.