#CryptoPatience #cryptotradingpro

DEGO's 47% drop in price in 24 hours reflects technical overstrain, concentrated selling, and altcoin weakness amid Bitcoin's dominance.

1. Overbought correction: 7-day RSI level (70.58) indicates exhaustion of growth.

2. Volatility due to whales: The 10 largest holders control 90% of the supply, allowing them to sell large volumes quickly.

3. Pressure on altcoins: Bitcoin dominance has grown to 63.06%, crowding out the liquidity of smaller tokens.

Detailed analysis

1. Technical context

DEGO’s 7-day RSI reached 70.58 (an overbought sign) on June 3, before the sell-off began. The price had been trading in a range of $1.91-$2.06 since May 23 (CryptoFrontNews), but during the decline, it fell below the 50-day simple moving average (SMA) at $2.04. The MACD histogram (+0.0525) showed declining bullish momentum, consistent with the RSI divergence.

2. Market dynamics

Bitcoin dominance increased by 0.4% to 63.06% in 24 hours, increasing pressure on altcoins. The SMS Altcoin Season Index remained at 24/100 ("Bitcoin Season"), which is favorable for large-cap coins. DEGO trading volume increased by 64% to $45.8 million in 24 hours, indicating panic selling more than organic demand.

3. Associated factors

Concentration risk: 90% of the entire DEGO offering is in the hands of 10 addresses, which increases the risk of mass coordinated sales.

Lack of liquidity: turnover ratio (1.62) indicates about shallow order books, which exacerbates the decline during sell-offs.

Lack of new drivers: the last significant ones

news (May 23) is more about consolidation than development.

Conclusion

DEGO’s decline is attributed to profit-taking after overbought signals, Bitcoin’s dominance in the market, and structural risks in the owner base. With the neutral market sentiment and altcoins struggling, it’s worth watching to see if DEGO can hold above the 200-day exponential moving average ($1.97) or wait for further distribution. Whether the renewed NFT and DeFi ideas can restore the token’s liquidity remains to be seen.