EDGE rallies, but sentiment remain neutral – What’s raising investor caution?

EdgeX [EDGE], the native token of the decentralized trading application, has continued to see major price swings, with cumulative gains of over 11% in the past day.

At first glance, the rally remains optimistic, and the tendency for a continued swing remains the broader outlook. However, data shows that the difference in capital between long and short positions is not so far apart.

Capital pull doesn’t exist

Liquidation heatmap analysis shows that limited liquidity across EDGE’s price range leaves room for either an upward move or a downtrend.

The heatmap analysis highlights areas on the chart where there are likely to be potential buy orders (below the price) and sell orders (above the price), which often act as magnets that pull the price.

The 3-month heatmap shows a very limited cluster of liquidity across the market, leaving EDGE without a cluster-driven push.

In addition to this, the gap between long and short liquidated capital remains minimal, in a way that does not particularly suggest that the long trend is dominating.

CoinGlass shows that total liquidations in the past day amounted to roughly $47,580, with short liquidations at $23,790 and long liquidations reaching $23,790.

The narrow gap shows neither side’s dominance, as short positions would have lost significantly more capital if the broader trend were bullish.

Capital flow still shows weakness

There is still some level of apparent weakness in the market, especially linked to capital outflows in the perpetual market and weak demand in the Spot market.

The Perpetual Market Netflow shows that there has been more net capital outflow than inflow, signifying that there has been more profit-taking or that traders are pulling their capital out of the market.

The trend has been observed across a long stretch in the perpetual market. In the last 7 days alone, there has been a cumulative netflow of -$2.27 million, following the sale of $61.85 million worth of EDGE tokens in the market.

Likewise, it’s a similar trend in the Spot market with minimal demand. In the past 24 hours, the Spot Netflow was around -$51,000, following the purchase of $1.35 million worth of the asset in the market.

Demand has remained slim and has continued to show that investors in the market do not have a convincing bullish outlook for the price.

It’s a non-decisive market

It’s a non-decisive market as it is, with sentiment analytics showing a neutral reading.

The neutral reading implies that there is a tussle among investors over whether the price is fair or correctly valued. This type of dispute, especially when the price is rallying, does not support the bullish trend.

This remains similar to the earlier outlook, with liquidated capital remaining slim and closely balanced. Ultimately, investors need to exercise caution until a clear directional bias forms.

Final Summary

• EDGE has gained over 11% in the past day, but long and short liquidations remain closely balanced.

• Persistent capital outflows and weak Spot demand keep the market indecisive despite EDGE’s recent rally.