On June 4, 2025, Dego Finance (DEGO) suffered a dramatic collapse, with its price plunging nearly 50% in a single day. The token dropped from around $2.63 to $1.33, leaving investors in shock ๐จ and the crypto community buzzing with speculation.
๐ Whale Dump Sparks Panic
The crash was largely triggered by a major whale sell-off, where over $250,000 worth of DEGO was sent to centralized exchanges. This massive movement signaled a potential dump, causing retail investors to panic ๐ฑ.
As fear spread, over $650,000 in long positions were liquidated ๐ธโthe largest in DEGO's history. The sell-off snowballed into a full-blown price collapse that left the market reeling.
๐ค Controversial Partnership with USD1
Just before the crash, DEGO's team made headlines by announcing support for USD1, a stablecoin associated with Donald Trump's World Liberty Financial ๐๏ธ. Dego added liquidity for USD1 on the BNB Chain, hoping to boost adoption and visibility.
Instead, the move raised eyebrows ๐ค. Many questioned the wisdom of aligning with a politically charged asset, fearing regulatory scrutiny or reputational harm. Rather than inspiring confidence, the announcement may have fueled the sell-off ๐ฅ.
๐ Technical Breakdown
Technically, the situation was bleak. The price sliced through key support levels like butter ๐ช, and the Relative Strength Index (RSI) fell below 30โindicating heavily oversold conditions ๐.
At the time of writing, DEGO is trading around $1.33, down nearly 49% in 24 hours. Analysts warn that if it dips below $1.30, it could fall to $1.10 ๐จ. However, holding current support might lead to a short-term recovery to the $1.55โ$1.65 range ๐.
๐ฎ Whatโs Next for Dego?
To bounce back, the Dego team needs to act fast. That means clear communication ๐ข, transparency about partnerships ๐ค, and decisive steps to rebuild trust ๐ช.
This crash is a reminder that crypto markets are high-risk and high-reward ๐ข. While innovation is crucial, investor confidence and timing are everything.
For now, all eyes are on Dego Finance ๐. Whether this was a temporary setback or the start of a long downturn depends entirely on how the project moves forward.
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