Quick summary
DEGO faced a sharp decline of 49% on June 4, 2025, due to large sell-offs by major investors (whales) and fears of a 'rug pull', although some traders see potential for a short-term recovery if the price can surpass a major resistance.
June 4 drop: A 49% drop within one hour, with liquidations worth $650,000, linked to massive transfers from whales and a controversial partnership with a $1 stablecoin.
Technical breakdown: Price dropping below important moving averages, with RSI and MACD indicators suggesting a potential continuation of the decline.
Diverging insights: Sentiment shifted from cautiously neutral to a state of panic, with accusations of manipulation and doubts about project decisions.
Detailed analysis
1. Overview of general sentiment
Sentiment towards DEGO shifted from neutral caution to severe pessimism after the June 4th drop. Before the drop (May 23), traders noted price stability at a support level of $1.91 and good performance against BTC and ETH, indicating a shift of capital towards smaller coins. After the drop, panic spread on social media, with some comparing it to the collapse of the Mantra coin, raising questions about the $1 stablecoin partnership.
2. Main discussion topics
Whale dominance: The top 10 wallets hold about 89.86% of the supply (CoinMarketCap), increasing volatility risks. The sell-off on June 4 saw over $250,000 worth of DEGO transferred to exchanges, leading to a wave of cascading liquidations.
Controversial partnerships: DEGO's partnership with World Liberty Financial, linked to former President Trump, raised concerns about a 'rug pull', despite claims of building a DeFi ecosystem.
Technical fragility: After the drop, DEGO broke below the 50 and 100-day moving averages, while the RSI shows 24.3 and MACD indicates an oversold condition, but no positive reversal signals have appeared yet.
3. Platform-specific insights
Twitter/X: Traders pointed to a price resistance of $2.06 before the drop as a breakout target; after the drop, focus shifted to the psychological support level at $1.00.
Telegram: Community discussions revolved around whether it was appropriate to 'buy the dip' or exit, noting a price drop of DEGO by 32.9% over 90 days and weak liquidity (turnover rate of 0.308).
Developer forums: Limited activity and no major protocol updates issued since the drop to regain confidence.
Summary
DEGO is characterized by high volatility and significant ownership concentration, making it a high-risk asset closely tied to the actions of major investors and the success of real project transformations. While an oversold condition may lead to a temporary rebound, the absence of fundamental catalysts and damaged confidence calls for caution. Will the DEGO team be able to address liquidity issues or will the coin face further declines away from the trends of the DeFi and NFT sector?
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