EdgeX (EDGE) has firmly sided with the bulls, with the asset surging 34% over the past day at press time, as market sentiment reflects the growing strength of buyers.
The analysis shows that while the asset has already gained ground, concerns remain over whether the momentum will sustain long enough to close the unfilled liquidity gap ahead of the price. For now, market sentiment is still in favor of the bulls.
EdgeX rally breaks out of 30-day consolidation
EDGE’s rally stems from a breakout of the descending consolidation pattern in which the asset traded for approximately thirty days as the price moved between key support and resistance levels.
Although the market is showing a decent level of optimism after the recent breakout, the asset still needs to show substantial growth to break through the $0.39 to $0.42 range, which is currently acting as bid.
If the asset maintains this phase with increasing momentum, it could reach the short-term target of $0.55. From here, EdgeX could continue trending towards the $0.80 level. Therefore, tThe area between $0.80 and $1.21 represents a fair value gap that price must fill based on order flow.
Indicators point to growing strength
The indicators, which provide a reliable way to track trader sentiment and trading activity on an asset, suggest that EdgeX could be heading for a major turnaround.
The two indicators applied in this analysis, Chaikin Money Flow and Bull Bear Power, show that the market has been in a bearish phase since the beginning of June. Chaikin money flow had dipped into negative territory and trended downward, but around July 7, it returned to positive territory.
A positive reading implies that buyers are dominating market volume, and a continued rise suggests that prices should continue to move in this direction. The Bull Bear Power adds to the outlook, confirming which party is in control.
At press time, the bulls dominated the market and the asset is expected to continue its upward trend if this dominance continues. A reasonable target remains the $0.55 level reported earlier on the chart.
EdgeX Sentiment Remains Upbeat
Sentiment analysis, which gauges whether bulls or bears are dominating the market based on activity, shows that the bulls are firmly in control. The analysis yielded a sentiment of 2.97, indicating a now firmly bullish market.
Continued growth in bullish sentiment could attract more capital to the asset and support the trend. Overall, readings of price action, indicators, and sentiment indicate that there is a high chance that EdgeX will extend its rally higher.
Final Summary
- EdgeX surged 34% in a day as buyers took control and took the asset out of a month-long price range.
- Momentum indicators and market sentiment were both bullish, leaving room for further upside if this strength continues.
