Summary
DEGO faces negative pressure after a 49% decline on June 4, 2025, due to large sell-offs by major investors (whales) and fears of a known fraud called 'rug pull', although some traders look to the possibility of a price rebound.
Sudden Drop: A 49% decline within one hour linked to transfers exceeding $250,000 to trading platforms and settlements reaching $650,000.
Controversial Move: Partnership with the USD1 stablecoin linked to former President Trump raised doubts about potential fraud.
Technical Deterioration: The price broke key support levels, with technical indicators like RSI and MACD suggesting continued decline.
In-Depth Look
1. General Sentiment Picture
Bearish sentiment dominates after DEGO's crash on June 4, which wiped out several months of gains, and the token now shows a 51% decline over the week. There was previously neutral to cautious optimism (May 23) about potentially surpassing resistance at $2.06, but this faded after the crash. Social media reflects panic and accusations of 'rug pull' amid doubts about the project's shift to the USD1 stablecoin (source).
2. Key Discussion Points
Whale-Driven Volatility: The top 10 holders control 88% of the supply, increasing the risks of concentrated selling. There was a $250,000 transfer from DEGO to trading platforms just before the crash.
Reactions to USD1 Partnership: DEGO's announcement of purchasing the USD1 stablecoin linked to Trump as liquidity reserves coincided with the crash, sparking speculation about intentions to withdraw liquidity.
Clear Technical Deterioration: The price broke below the 50 and 100-day moving averages (support at $1.91) and a descending bullish channel indicating price targets near $1.
3. Influential Perspectives
Traders: Monitoring the possibility of DEGO recovering to the $1.38 level (resistance after the crash) or just a temporary rebound similar to what happened with Mantra.
Analysts: Point to similarities with the 90% collapse of Mantra in May 2025, which saw a 157% recovery before renewed selling.
Developers: No direct response to the crash allegations has been issued, but they confirm that the USD1 move aims to 'enhance decentralized finance liquidity' (source).
Conclusion
DEGO's collapse highlights risks of low liquidity, concentrated ownership, and the impact of popular narratives on sub-cryptocurrency prices. Current conditions may provide opportunities for some short-term traders, but the absence of fundamental catalysts and technical deterioration calls for caution. Will DEGO's partnership with USD1 contribute to stabilizing sentiment, or is it merely a move to stealthily withdraw liquidity?