EDGE token crashes 46% and liquidates $2,81 million in one hour

The EDGE token has taken a major hit on the crypto market. According to Binance market data, the price dropped in a single four-hour candle from $1,1424 to $0,6115, a decline of as much as 46,80%. At the low point, the token even touched $0,3208 before a slight recovery followed. At the same time, liquidations are mounting: Coinglass records a total of approximately $2,81 million in liquidated EDGE positions in the past hour.

Massive liquidations in a short time

Of the $2,81 million in liquidations, the largest portion consists of long positions. Traders betting on a rising price are hit hard: $1,96 million in long liquidations are wiped out in record time. Short positions are doing relatively better, but even there the damage amounts to $849.280.

The enormous volume spike visible on the chart shows how intense the selling pressure is. While the volume remained relatively calm in the weeks before, the selling peak around 1 June completely surges. Such sudden price movements are often accompanied by cascades of forced liquidations, where one liquidation effectively triggers the next. A trader who previously lost $42 million in profit on a short position on Hyperliquid illustrates how dangerous this kind of volatility can be for leveraged traders.

Binance as the scene of the crash

The crash largely takes place on Binance, which releases the market data. The 24-hour volume for EDGE rises to 234.75K with an open interest of 73.58K. That Binance is also in full motion on other fronts is evident from recent developments such as the expansion with shares and tokenized equities.

For now, there is no official explanation for the sudden price drop of EDGE. Whether it involves a large-scale sell-off by major players, a technical issue or other market conditions remains unclear at this time. The situation around the token remains uncertain for the time being, especially since the recovery from $0,3208 has so far been limited.