ASTER is hovering around an important support point after losing its momentum from its breakout attempt. The next step for the token from this point will determine whether it goes into a stable position or continues its decline.
According to CoinMarketCap data, ASTER is trading at $0.6620 at press time. The token is 1.22% down in the last 24 hours. The trading volume increased by 3.73% and is currently standing at $169.22 million. Over the last seven days, the token’s price has dropped by 8.34%.
ASTER Holds Near Critical Support
A prominent analyst, Crypto TXG, highlighted that ASTER had retested the support at $0.65 and had shown a strong bounce. This indicated that buyers were still present at that support.
However, this buying activity diminished as the token price started to fall. The asset’s price had been rejected at a level just below $0.8178 and then pulled back again.
The analyst noted that ASTER is retesting support again. This has created this zone as important for determining short-term direction. If this support is lost, a pullback could extend to lower levels. Should support be maintained, consolidation rather than a deeper decline could be seen.
Additionally, another analyst, Ardi NSC, mentioned that a failed breakout has weakened the bullish structure. The analyst further added, “Once price loses the range low on a failed breakout, trapped positions can start to build more pressure on the chart, which can make it harder to stop the move on the downside.”
Also Read: ASTER Price Outlook: Breakout Above $0.80 Could Open $0.95 Target Zone
Analysts noted that this risk has been developing in ASTER’s 35-day consolidation phase. He said that when a chart is compressing for a long time, the significance of the upper and lower bounds of that compression is increased. Once it’s broken, the move is likely to extend beyond the previous range.
ASTER Breakdown Keeps Bears in Control
The analyst had earlier stated that in case the price loses $0.66, the price would start to move towards $0.60. The price has already touched the area close to $0.60. This means that the bearish move is no longer just a setup on the chart, it is already in action.
The next issue is whether ASTER can close back above the broken range low. This would help to improve the chart. If it cannot close back above the broken range low, the failed breakout could continue to reverse. This would keep the chart at risk of completing the move towards $0.60.
Open Interest Falls as Liquidations Rise
CoinGlass data shows mixed derivatives activity over the last 24 hours. The trading volume increased by 0.69% to $350.94 million. Open interest fell by 2.67% to $361.93 million. The OI-weighted funding rate is at 0.0007%.
Liquidation data show stronger losses on the bullish side. Total liquidations stood at $398.18K in the last 24 hours. The liquidations on the long side were $293.66K. Short liquidations totaled $104.52K.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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