Dego Finance Token Plunges, Echoing Mantra’s Collapse
On Wednesday, the Dego Finance (DEGO) token experienced a dramatic 40% drop. This sudden fall erased all gains from recent months and brought back memories of the Mantra (OM) collapse.
The crash led to notable liquidations. CoinGlass reported that over $650,000 in long positions were liquidated, setting a new record for the token. The plunge followed the movement of more than $250,000 worth of DEGO tokens to exchanges, ending a ten-day period of net outflows.
Similar to Mantra’s 90% drop, there was no major news behind DEGO’s plunge. Mantra’s developers blamed forced liquidations from an unnamed exchange. DEGO’s crash happened on the same day the developers announced they were buying USD1, a stablecoin by Donald Trump’s World Liberty Financial on the BNB Chain.
Some social media users warned this could be a rug pull scam. The DEGO team stated they were purchasing USD1 to support liquidity.
Technically, DEGO’s price peaked at $2.8600 last week. However, Wednesday’s nosedive retested the year-to-date low. The token fell below key moving averages and the lower side of an ascending channel.
Indicators like the Relative Strength Index and MACD point downwards,suggesting further declines. The price could fall below $1. A temporary relief rally, or “dead cat bounce,” is also possible, similar to Mantra’s price action.
