edgeX (EDGE) remained under pressure as its post-TGE price discovery continued despite the project transitioning to the StarkEx V2 architecture. The token was trading at $0.3756 at press time after falling 19.3% in the past 24 hours.
The market capitalization also fell by 20.09% to $131.47 million, while the trading volume decreased by 51.79% to $31.74 million.
These figures show that retailers have reduced their activity instead of seeking lower prices.
However, the ongoing infrastructure upgrade reflects a broader change that goes beyond a simple product update.
The move from StarkEx V1 positioned EdgeX towards a more independent derivatives infrastructure with stronger self-custody and higher performance.
Despite this, the market continued to price the token cautiously as participants looked for a sustainable price post-launch.
Why have leveraged traders reduced their exposure?
Derivatives traders reduced their exposure throughout the latest decline, reinforcing weakening market participation.
Open interest fell 25.79% to $20.96 million, indicating that traders closed positions instead of introducing new leverage during the sell-off. This behavior reflected a decline in speculative conviction rather than aggressive positioning one way or the other.
Furthermore, the sharp drop in trading volume supports the same narrative, as fewer participants actively took new positions.
The combined contraction in spot and derivatives activity suggests that many traders preferred to wait for stronger confirmation before committing additional capital.
While the drop reflects weakening confidence, it also shows that excessive debt has gradually disappeared from the market, which could reduce pressure on liquidations if buyers eventually return.
Can bulls defend the current support zone?
EDGE retested support after failing to sustain its recent rebound above $0.50, leaving buyers under renewed pressure.
The price moved back towards $0.38, while $0.2950 continued to serve as the nearest support level. A break below this zone could expose $0.2330, while reclaiming $0.50 would put $0.7137 back in focus.
Despite the latest drop, the Parabolic SAR remained below price, showing that the broader recovery structure has not completely collapsed.
However, the MACD painted a more cautious picture. The MACD line remained above the signal line, preserving its bullish crossover.
Despite this, the histogram began to narrow as both lines flattened, indicating that buying strength had weakened following the near-resistance rejection.
As a result, buyers needed renewed demand before the technical outlook could improve significantly.
Have EDGE financing rates already lost their conviction?
Perpetual market positioning has also eased as funding conditions have drifted towards neutral levels.
THE Financing rate weighted by IO stood at around 0.0024%, showing that traders were no longer paying a significant premium to maintain long positions.
Previous positive results gradually faded before reaching near neutral territory, reflecting a balanced market rather than aggressive bullish positioning.
Additionally, the change in funding aligned with the decline in open interest, reinforcing the idea that leveraged traders were reducing exposure rather than expanding it.
This combination highlighted a cooling in the derivatives environment after the recent volatility.
If funding remains close to neutral while participation stabilizes, traders could gradually regain confidence.
Otherwise, further declines in participation would likely keep EDGE in its post-TGE price discovery phase.
Final Summary
- edgeX remained in price discovery post-TGE despite continued progress toward StarkEx V2 infrastructure.
- Lower open interest and neutral funding reflect lower conviction among leveraged EDGE traders.
