Dego Finance (DEGO) has experienced a significant decline in its market value, currently trading at approximately $1.33, a stark contrast to its all-time high of $33.82 in March 2021—a decrease of over 95%.
Key Factors Behind DEGO's Price Decline
In February 2022, Dego Finance suffered a major security breach where hackers drained over $10 million from its liquidity pools. The attack led to a sharp 20% drop in DEGO's price and raised serious concerns about the project's security measures. Audit firm PeckShield suggested the possibility of a rug pull, further eroding trust among investors.
Dego Finance's Total Value Locked (TVL) stands at a mere $9,000, highlighting a lack of user engagement and trust in the platform's DeFi offerings. This low TVL suggests that users are hesitant to lock their assets in the platform, possibly due to security concerns and lack of compelling incentives.
The overall market sentiment for DEGO remains bearish, with 67.65% of technical indicators signaling a downtrend. Additionally, DEGO has experienced multiple instances of rapid price drops exceeding 10% within an hour, indicating high volatility and potential market manipulation or panic selling.
Technical analysis indicates a bearish trend for DEGO. The token is trading below key moving averages (MA10, MA50, and MA200), signaling downward momentum. Momentum indicators like the Relative Strength Index (RSI) and Awesome Oscillator also reflect declining momentum, suggesting potential for further price decreases.
The decline in DEGO's price can be attributed to a combination of security breaches, bearish technical indicators, negative market sentiment, and low user engagement. While short-term price fluctuations may occur, the long-term outlook for DEGO remains uncertain unless significant improvements are made in security, transparency, and user trust.
