EdgeX [EDGE] continued with its price discovery, extending a five-day-long rally. The altcoin surged to a new all-time high of $1.19, then slightly dropped to $0.97.
At press time, EDGE traded at $1.04, up 19% on the daily charts. Over the same period, its trading volume rose by 280% to $357 million. With the price uptick, it became a top-100 cryptocurrency by market cap, ranking 92nd at $375 million.
EDGE team faces scrutiny over the airdrop
Although EDGE has performed relatively well since launch, the team has faced heavy criticism over its token airdrop. On‐chain monitors reported that the EdgeX team likely retained most of the $195 million from the airdrop for themselves. Notably, Arkham data showed that 14% of the airdrop was directed towards partners and liquidity providers.
According to Onchainschool, the team airdropped to 80+ fresh wallets linked directly to the team. In total, about 180 million tokens were distributed for a sum of over $90 million.
After being called out, the team redirected some of these funds toward a token buyback, purchasing and burning over $2 million worth. These actions highlighted a lack of transparency from the team, raising concerns across the wider community.
Market players show strong bearish sentiment
Interestingly, as the market rallied, most early buyers jumped in and cashed out. According to Coinalyze data, the altcoin recorded 67 million in Sell Volume compared to 64 million in Buy Volume as of writing.
The token has seen significant sell pressure since its launch, with trading volume exceeding 800 million. This signaled a lack of long-term confidence in the token, and most participants sought easy short-term gains.
On the Futures side, most traders have been shorting the market. The Long‐Short Ratio fell to 0.68, with 59.6% of Futures positions on the short side.
When shorts dominate, it suggests that most investors were bearish and expect prices to slide in the near future.
What’s next?
EDGE showed strong upside momentum, primarily driven by low float. Out of 175 million tokens, 140 million tokens are locked, 34 million are held in wallets, and 1.45 million are on exchanges.
The low supply has strengthened the altcoin tokenomics, leading to higher prices. However, market participants have remained bearish across the market.
Under the prevailing conditions, EDGE is likely to drop further below $1 and seek support around $0.75. However, if the team continues with buybacks and token burns, the token could hold above $1 and eye $1.2.
Final Summary
- Edgex [EDGE] experienced massive volatility, rallying to an all-time high of $1.19 before falling to a low of $0.94.
- The EDGE team faced criticism over airdrops, as they were accused of dropping $90 million for themselves.
