The price of Dego Finance (DEGO) tokens experienced a sharp decline of over 48% on June 4, 2025, dropping from around $2.63 to $1.33 in a short period. This decline triggered the liquidation of long positions worth over $650,000, the highest in the history of this token.
Causes of DEGO Price Decline
1. USD1 Purchase Announcement: Dego Finance announced the purchase of USD1 stablecoin tokens from World Liberty Financial on the BNB Chain network. This move, intended to strengthen the DeFi ecosystem, instead raised concerns among investors and triggered massive sell-offs.
2. Whale Sell-off: Large investors (whales) reportedly moved over $250,000 worth of DEGO tokens to exchanges, ending a 10-day outflow trend. With a relatively small market capitalization, this sell-off had a significant impact on the price.
3. Increased Trading Volume: Trading volume surged over 240% to around $85 million, indicating panic in the market.
Technical Analysis
Key Support: $1.30 – the price briefly held at this level after the sharp decline.
Resistance: $1.65 – the level where the price has struggled to break above.
RSI Indicator: Dropped below 30 during the decline, but has started to recover to around 45, indicating potential price recovery.
DEGO's Prospects Going Forward
If the price manages to hold above $1.30, there is a possibility of recovery to the range of $1.55–$1.65 in the short term. However, if it drops below $1.30, the price could continue to decline to around $1.10. In the long term, price recovery depends on the DEGO team's ability to regain investor confidence through project updates, new partnerships, or listings on major exchanges.
Currently, DEGO is trading at around $1.32 with a 24-hour trading volume of over $70 million.