In mid-January, the weakness that Aster’s [ASTER] price action exhibited was illustrated in a report that highlighted $0.70 as a supply zone. Over the last two weeks of trading, Aster rallied to a high of $0.711, before receding rapidly to the $0.403-low.
This low was set in the aftermath of the recent sell-off when Bitcoin [BTC] fell to $60k. Since registering this low, ASTER prices have bounced 53.85% in just three days.
And yet, the 1-day structure seemed to retain its bearish structure at press time. The huge upcoming token unlock does not help the bullish case either. Aster will have a $44.49 million unlock of 78.11 million ASTER on 17 February.
The tokens need not be immediately sold, but unlocks dilute existing supply. And, the current market sentiment adds credibility to a potential wave of selling later in February. The token buybacks by the Strategic Reserve Buyback Fund demonstrated the project’s long-term conviction.
ASTER bounce could extend slightly further
Source: ASTER/USDT on TradingView
On the 1-day chart, the structure saw a bearish break in mid-January. Using this impulse move’s swing points, a set of Fibonacci retracement levels was plotted. $0.725 and $0.656 were the key overhead resistances to watch.
The moving averages captured a bearish trend, and the A/D indicator reflected steady selling pressure on the Aster token. Combined with the 1-day structure bearish bias, it is clear what traders should do.
Traders’ call to action – Sell the bounce
Source: CoinGlass
The liquidations around $0.6 have been swept, but a denser band of liquidity was clustered around $0.734. This would be the immediate price target. Moreover, Bitcoin [BTC] could also see heightened volatility on Sunday/early Monday in the form of a short squeeze towards $72k-$74k.
Therefore, ASTER traders can wait for a bearish reaction at $0.73-$0.74 before entering a trade. To the south, the local lows at $0.53 and $0.46 would be the downside targets, with the $0.405 wick to be filled eventually.
Final Thoughts
- Aster’s price action has remained firmly bearish, despite the 53% price bounce within three days.
- Traders can look to sell the short-term rally towards $0.74 as the price hunts out stop-loss orders.
