ambcrypto.com 
The decentralized exchange token edgeX [$EDGE] saw heightened volatility over the previous week. The bulls tried to seize control, and the recent market-wide correction gave the reins to the bears.
The result was that the $429 million market cap altcoin $EDGE was trading at $1.226, just 2.31% above the close at $1.199 on Sunday, 17 May.
Bitcoin’s [BTC] short-term trend flipped bearishly too, and falling demand and seller dominance have sent the attempted $EDGE rally into disarray.
As the altcoin approaches a reliable support zone nearby, should traders expect a price bounce or the beginning of a downtrend?
Unravelling the $EDGE volume indicator findings
Data from CoinGecko showed that the EdgeX exchange’s perpetuals trading volume has been in decline since the final week of March. This can likely be attributed to the slowdown in crypto sentiment.
Bitcoin has grown slightly since late March, but a long-term uptrend remains elusive. And, altcoins as a whole have not been able to secure more capital inflows.
Despite the downturn in perpetuals trading, the token has performed relatively well since early April. Even so, its momentum has struggled to stay bullish in the last 4-5 weeks.
Source:
$EDGE/USD on TradingView
The price action on the 12-hour chart revealed a bullish structure in place. The swing low at $1.09 was critical in maintaining the bullish structure. Similarly, the $1.12-$1.24 region has acted as a demand zone since mid-April.
While this area has kept sellers at bay, market conviction has been lacking. The spot trading volume in $EDGE has eroded away after the mid-April spike. Since then, flat volumes and aggressive sell-offs in the $1.4-$1.5 supply zone have denied a bullish continuation.
Using the $EDGE token’s volume indicator trends, we can see that the bears have a slight advantage. While the OBV was on an uptrend but flat in May, the A/D and CMF indicators favored the sellers.
The RSI’s momentum indicator also showed that bears had the upper hand.
Tying the clues together, it can be seen that $EDGE has been trading in a range. The $1.1 support zone is important, as is the $1.5 supply zone.
A breakout past either area would be likely to set up the next impulse price leg. Until then, traders can expect the range to be sustained.
Final Summary
- $EDGE bulls tried to break the $1.5 supply zone yet again earlier this week, but faced unyielding bears.
- The $1.09-swing level is key to maintaining the bullish price structure of the DEX token.
