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 over the past 24 hours while trading volume jumped 39% to $12.53 million, suggesting that participants had begun re-engaging with the asset.
Unlike earlier sessions that attracted limited participation, the latest advance developed alongside stronger trading activity.
As a result, buyers appeared more willing to step in despite the broader bearish backdrop.
While the recovery remained modest compared to the scale of the previous decline, the increase in volume suggested that traders had started paying attention to EDGE again.
Fresh capital enters the derivatives market
Interest in leveraged positions also increased as traders expanded their exposure to EDGE. Open Interest climbed 21.39% to $17.52 million, indicating that new positions entered the Futures market during the rally.
This increase carried greater significance because it followed a period of sustained selling pressure that had driven the token sharply lower.
Rising Open Interest alongside a higher price often reflects growing conviction among market participants rather than a temporary reaction from existing holders. The increase suggested that traders expected volatility to remain elevated in the near term.
Although higher leverage can amplify risk, it also highlighted stronger engagement across derivatives markets. For now, participants appeared increasingly willing to position for further price movement as EDGE attempted to build a base above its recent lows.
Short sellers feel the pressure
Liquidation data revealed that bearish traders absorbed most of the market pressure during the latest recovery attempt.
Total short liquidations reached approximately $45,070, while long liquidations totaled around $14,010.
The imbalance indicated that the upward move forced a larger number of short sellers to close positions, adding further buying activity to the market. Binance recorded the largest share of short liquidations, with roughly $473,480 wiped out during the session.
This development suggested that some traders had continued betting on downside even as the token stabilized. As prices moved higher, those positions became increasingly vulnerable.
Although liquidation volumes remained relatively modest, the disparity between shorts and longs reflected improving sentiment across the market.
Is EDGE ready to reclaim lost ground?
EDGE continued attempting to recover after its dramatic collapse from the $1.50 region earlier this month.
At the time of analysis, EDGE traded around $0.4013 and approached the $0.4216 resistance level, which marked an important barrier following the recent breakdown.
RSI climbed to 30.88 after spending several sessions in deeply oversold territory, indicating that selling pressure had eased considerably.
Even so, the indicator remained below the neutral 50 mark, showing that buyers had not fully regained control. Meanwhile, the Parabolic SAR stayed above price, maintaining a bearish signal despite the recent rebound.
This divergence suggested that recovery efforts had strengthened, though the broader trend had not yet shifted.
If buyers secure a move above $0.4216, the next upside target could emerge near $0.5000. However, failure to clear 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 stays under pressure.
