Has EDGE hit a local bottom after a sharp correction?

EDGE has recovered 19% in 24 hours, but the overall trend remains unchanged.

The upward trend, accompanied by rising volume and Open Interest, suggests the market has returned attention to EdgeX [EDGE] after a sharp decline. However, technical indicators still suggest the nearest resistance zone remains crucial.

EDGE's recovery is accompanied by improved liquidation .

EDGE rose 19% in 24 hours to $0.400, while volume increased 39% to $12.53 million. This indicates that this rally saw more significant market participation compared to previous sessions.

Previously, the Token had lost nearly three-quarters of its value in just a few weeks. The improved liquidation suggests that buyers are starting to reappear, although the recovery is still small compared to the previous drop.

An increase in Open Interest indicates new capital inflow into the Derivative market.

EDGE's Open Interest increased by 21.39% to $17.52 million, reflecting the number of new positions opened during the price recovery. This development is often accompanied by expectations of continued high volatility in the short term.

An increase in Open Interest along with rising prices is generally interpreted as indicating more active market participation, rather than just a short-term reaction from existing holders. However, high leverage also increases the risk of significant volatility.

The selling pressure is leaning towards the short sellers.

Liquidation data shows that short sellers suffered greater losses during the EDGE rally. Total Short liquidation was approximately $45,070, while Longing liquidation was around $14,010.

This divergence indicates that the upward momentum forced many bearish positions to close. Binance recorded the majority of Short liquidations during the session, with approximately $473,480 wiped out.

The $0.4216 level is the one that needs to be surpassed.

EDGE is attempting to recover from a sharp drop from the $1.50 region earlier this month. At the time of this report, the Token is trading around $0.4013 and approaching the $0.4216 resistance level.

The RSI rose to 30.88 after several sessions deep in oversold territory, indicating that selling pressure has eased. However, the indicator remains below the neutral 50 mark, and the Parabolic SAR is still above the price, so the overall trend has not truly shifted to an uptrend.

If EDGE surpasses $0.4216, the next price zone could be near $0.5000. Conversely, if the rebound fails, the Token could retest the support zone at $0.3346.

Summary

EDGE has seen a notable rebound thanks to increased liquidation, open interest, and Short liquidations, but the resistance zone near $0.4216 remains crucial for determining its next direction.