Dego had one of its most volatile sessions yesterday when its prices surged by 270 per cent in the early hours of the trading session. However, by late hours, the prices had already started to come down aggressively, resulting in a 59 per cent drop from the day’s price high. By the end of the trading session, Dego Finance had dropped from a price surge of 270 per cent to a closing price gain of 47 per cent.
In today’s trading session, Dego Finance is down by 4 per cent, showing signs of a continuation of the 59 per cent drop from the late hours of yesterday’s trading session. The price action also shows a high likelihood of the bearish trend continuing throughout the session, with intraday trading data on the lower timeframes being aggressively bearish.
The volatility of the past 48 hours has come amidst a huge spike in the trading volume of the Dego Finance tokens. According to data from CoinMarketCap, the past 24 hours have seen the trading volume surge by over 12,500 per cent.
Normally, a surge of more than 50 per cent in trading volume can result in an aggressive bullish move. Therefore, the 12,500 per cent surge in trading volume within a day may be causing the current spike in Dego Finance prices in the markets.
Unfortunately, despite the spike, there has been no significant news event that we know of that might have sparked the sudden interest in the crypto. The only explanation might be that whales have invested in the coin, resulting in its sudden price spike.
Dego Finance Price Forecast
As seen from the fundamental analysis above, the current price surge and increased volatility and momentum of the crypto have been partly due to the 12,500 per cent increase in trading volume. Therefore, if trading volume stabilizes and drops to the same rate as it was a few days ago, I expect Dego Finance price to also drop.
Also, based on recent price action, it is likely that we might see Dego Finance’s price dropping further down, possibly below the $2 price level. However, a trade above the $2.9 resistance level will indicate a long-term bullish trend. It will also invalidate my fundamental and technical analysis of a bearish trend.
Dego Daily Chart
