After losing nearly three-quarters of its value in a matter of weeks, EdgeX (EDGE) finally showed signs of life as traders returned to the market.
The token climbed 19% to $0.400 in the past 24 hours, while trading volume jumped 39% to $12.53 million, suggesting participants had begun to re-engage with the asset.
Unlike previous sessions which attracted limited participation, the latest advance grew alongside stronger commercial activity.
As a result, buyers seemed more willing to intervene despite the general bearish environment.
Although the recovery remained modest compared to the magnitude of the previous decline, the increase in volume suggests that traders have started paying attention to EDGE again.
New capital enters the derivatives market
Interest in leveraged positions also increased as traders expanded their exposure to EDGE. Open interest rose 21.39% to $17.52 million, indicating that new positions entered the futures market during the rally.
This increase was of greater significance as it followed a period of sustained selling pressure that caused the token to fall.
Rising open interest accompanied by a higher price often reflects growing conviction among market participants rather than a temporary reaction from existing holders. This increase suggests that traders expect volatility to remain elevated in the near term.
While higher leverage can amplify risk, it also highlights stronger engagement in derivatives markets. For now, participants appeared increasingly willing to position themselves for further price movements as EDGE attempted to build a base above its recent lows.
Short sellers are feeling the pressure
Liquidation data revealed that bearish traders absorbed most of the market pressure during the latest rally attempt.
Total short liquidations reached around $45,070, while long liquidations totaled around $14,010.
The imbalance indicates that the upward move forced more short sellers to close positions, thereby adding additional buying activity to the market. Binance saw the largest share of short liquidations, with approximately $473,480 cleared during the session.
This development suggests that some traders continued to bet on a decline even as the token stabilizes. As prices rose, these positions became increasingly vulnerable.
Although liquidation volumes remained relatively modest, the disparity between short and long positions reflects improving market sentiment.
Is EDGE ready to regain lost ground?
EDGE continued to attempt to recover after its dramatic collapse from the $1.50 region earlier this month.
At the time of analysis, EDGE is trading around $0.4013 and is approaching the resistance level of $0.4216, which is a significant barrier after the recent breakdown.
The RSI climbed to 30.88 after spending several sessions in deeply oversold territory, indicating that selling pressure had eased significantly.
The indicator nevertheless remained below the neutral bar of 50, which shows that buyers have not completely regained control. Meanwhile, the Parabolic SAR remained above the price, maintaining a bearish signal despite the recent rebound.
This divergence suggests that recovery efforts have strengthened, even if the overall trend has not yet changed.
If buyers get a move above $0.4216, the next upside target could emerge near $0.5000. However, failure to breach resistance could expose the token to another test of support around $0.3346.
Final Summary
- Volume and open interest increased together, showing traders returned after weeks of weakness.
- Resistance near $0.42 remains crucial as the broader trend remains under pressure.
