EDGE faces $2.27M KuCoin deposit: 3-day outflow streak counters supply pressure

EDGE faced renewed supply pressure as a $2.27 million KuCoin deposit collided with the persistent net outflows and the recovering price structure. 

According to a prominent market analyst on X, the tokens initially originated from a bridge contract before moving through the three intermediary wallets toward the exchange.

However, the transfer heavily contrasted with the DEX’s aggressive buyback-and-burn activity during the second quarter. 

Notably, around $47 million worth of EDGE was reportedly bought back and burned throughout Q2.

Those burns limited the circulating supply, as the KuCoin deposit, on the other hand, placed a sizable token batch closer to potential distribution. 

However, the deposit alone did not confirm a selling activity, but rather its exchange destination increased the possibility of additional market supply. 

Three-day outflow streak offsets deposit concerns

The broader Spot flows outlook provided a contrasting indicator as EDGE recorded three consecutive days of negative exchange netflows. The streak implied that the aggregate outflows exceeded inflows despite the separate $2.27 million KuCoin deposit.

At the time of writing, the Spot netflow had reached -$419.36K, extending the sequence of withdrawals from exchanges into a third session. 

These persistent negative readings decreased the immediate exchange-side availability and partially countered supply risks around the large KuCoin deposit. 

Ultimately, this divergence made sustained outflows particularly significant for the price recovery since they could limit accessible selling supply. 

Short liquidations strengthen EDGE’s recovery

The derivatives activity added another layer of support as short liquidations heavily exceeded the long liquidations on the 8th of September. 

According to CoinGlass, the total short liquidations reached $44.04K, compared with only $9.85K across the long positions. Specifically, Binance accounted for around $39.92K of those short liquidations, as Bybit and OKX recorded $1.04K and $3.09K, respectively. 

On the other hand, the long liquidations remained elevated on Binance and OKX, reaching $1.09K and $8.77K, respectively.

The liquidation imbalance highlighted greater pressure on the bearish positions as EDGE maintained its broader recovery structure. 

Importantly, the short liquidations complemented the persistent Spot net outflows, implying sellers faced resistance across different various market segments.

Could EDGE revisit its Fibonacci golden zone?

At the time of analysis, edgeX [EDGE] market price sat around $0.5841 after defending the $0.5632 zone, keeping its recovery structure above that major level. 

Notably, the RSI cooled to 69.53 after surging above the overbought threshold and briefly extending beyond the 80 level. 

This implied that buyers retained considerable strength, although the pullback showed that the earlier intensity had started fading.

The Fibonacci levels placed the 0.5 retracement at the $0.5245 price level while the 0.618 level was at the $0.4828 price level. 

This $0.4828–$0.5245 golden zone could provide stronger support in case EDGE extends its current price retracement.

Importantly, a retreat into this region could possibly attract fresh buying interest and establish a foundation for another EDGE price reversal. 

Therefore, losing the $0.5632 support level would not automatically invalidate the recovery but rather open a deeper retracement toward a technically significant zone capable of supporting the next upside attempt.

Final Summary

• Three consecutive EDGE outflow days are countering fresh supply from the $2.27 million KuCoin deposit.
• A golden zone retest could provide support for another EDGE reversal toward the $0.7014 resistance.