What to know:
- ASTER failed to hold its breakout, putting the $0.68 support level back in focus.
- Analysts warn a drop below $0.68 could increase selling from trapped buyers.
- Some analysts view ASTER’s long consolidation as a base for the next move.
The ASTER token stayed under pressure on Friday after a failed breakout attempt saw it return to its previous range. Traders are currently watching the $0.68 level, which analysts have noted to be a key support level in determining short-term direction.
According to CoinMarketCap data, ASTER is trading at $0.6818, having declined by 0.23% in the last 24 hours. The trading volume has also gone down by 19.59% and is currently at $145.55 million. Over the last seven days, ASTER has lost 3.65%, showing that price momentum remains weak.
ASTER Pullback Raises Risk After False Breakout
In a post on X, analyst Ardi highlighted that the failed breakout has significantly changed the chart. According to him, after a breakout through resistance, there should always be acceptance and continuation of the breakout. However, in the case of ASTER, this is not seen.
Instead, ASTER is rejected immediately back into its previous 37-day range. Such a move is normally a sign of a breakout being used as a liquidity hunt instead of a breakout and continuation. This has left many traders trapped above the current price of ASTER.
He pointed out the probable positioning during the move. Breakout buyers were buying above the range. Short sellers likely covered their positions on the move up. Also, momentum traders participated in the move up. With price now below that area, this liquidity sits overhead.
Also Read: ASTER Faces Selling Pressure: Will $0.60 Support Hold?
Ardi added that breaking the price below $0.68 would not only be a loss of support. It would also be the start of downward pressure from the long positions. If the long positions are sold into the move down, the price may accelerate. Breakout failures are often associated with strong reversals.
Hunter Flags ASTER Range as a Bullish Setup
However, not all analysts are bearish about the situation. Hunter, an analyst, mentioned that “ASTER has developed one of the cleanest and longest consolidations in recent weeks.”
He added that the “price has traded in a tight range between $0.67 and $0.75 while the overall market has been volatile.”
Hunter said that the longer the consolidation, the stronger the potential move out of it. Tight price action is always a positive sign for a potentially stronger move.
Volume and Open Interest Fall
CoinGlass data shows weaker derivatives activity. Volume is down 36.89% to $270.19 million. Open interest also decreased by 1.44% to $393.98 million. The token OI-weighted funding stood at 0.0008%, showing a small premium for long positions.
However, the token remains near the lower end of its range. The focus in the market is on whether $0.68 holds. This level currently represents the dividing line between continued consolidation and a deeper decline.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Aerodrome Finance (AERO) Could Bounce to $0.40 or Drop to $0.25
Be the first to comment