Key Takeaways
Why did Aster surge, then retrace?
It surged 38% following CZ’s buy disclosure, and retraced all these gains as Bitcoin dropped below the $108k local support.
Does the recent 21% rally mean the bulls are back in control?
Not fully. The swing high at $1.28 remains untested, which means that bears have the potential to force another sharp downward move.
On the 2nd of November, Aster [ASTER] rallied 38% from $0.928 to $1.285. This move came after Changpeng Zhao, or CZ, co-founder and former CEO of Binance, tweeted a “full disclosure” that he bought Aster on that day.
The sell-off on the 3rd and 4th of November saw all these gains completely wiped out, and the token even made new lows. It fell to a swing low of $0.818, below the $0.92 launchpad that catapulted the token above $1 on the back of CZ’s tweet.
At the time of writing, ASTER was trading at $1.06. Its move above the $1 psychological level was encouraging.
Will this be the start of a sustained uptrend, or does the sentiment around Bitcoin [BTC] mean that this move is merely a bounce and a liquidity hunt?
Aster establishes a bullish structure
Source: ASTER/USDT on TradingView
The move past the $0.92 supply zone came in the late hours of the 4th of November. The former supply zone was retested as the support level.
Additionally, the bearish 1-hour structure was flipped bullishly when the local swing high at $0.97 was breached.
At the time of writing, it appeared that Aster was on the road to recovery. The MFI was moving above 50 to show bullish momentum and buying pressure behind the token.
The OBV has also made higher lows and higher highs over the past 24 hours to signal steady buying pressure.
Yet, the Fibonacci retracement levels at $1.1 and $1.185 were resistances that traders should watch out for. With Bitcoin also in a steady downtrend, Aster bulls need to be wary of a move that erases all recent gains.
What does smart money make of Aster?
On the 3rd of November, Lookonchain reported that a whale deposited $500k into Hyperliquid to go 3x long on ASTER, with a liquidation price of $0.7188.
Recently, a whale who had profited significantly from the meme coin Pepe [PEPE] invested $4.21 million in ASTER. However, not all whales are taking bullish positions; some are leaning bearish.
As for ASTER’s direction, the $1.28 swing high is a critical level for bulls to reclaim as support.
Until that happens, long positions remain vulnerable to sharp bearish reversals, despite technical indicators suggesting short-term bullish momentum.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
