Key Takeaways
Why did Aster rebound after its drop to $0.81?
Aster rebounded due to aggressive whale accumulation and renewed speculative interest in both spot and perpetual markets.
What could trigger another retracement in Aster’s price?
A reversal in perpetual sentiment and position closures could cause Aster to retrace toward $0.9.
A few days ago, following buzz around Binance founder CZ’s acquisition, Aster [ASTER] surged to $1.28.
However, it faced strong resistance at that level, triggering a pullback. The price dropped to $0.81, indicating heavy profit-taking.
Interestingly, after this decline, investors, particularly whales, stepped in to defend the $1 support level.
Aster whale buys the dip
After aggressively shorting the market days ago, whales returned to the spot market to accumulate Aster.
In fact, over the past 24 hours, the spot market recorded 327.16 million in Buy Volume, according to Coinalyze data, reflecting aggressive spot accumulation.
Source: Coinalyze
Onchain Lens reported one such buy order. According to the on-chain monitor, a whale sold 18.48 million ENA tokens for $5.71 million.
After the sale, the whale incurred a $4.3 million loss. They then deposited the proceeds into AsterDex and purchased $6.47 million worth of Aster.
This shift in capital reflects a strong conviction, suggesting the whale believes Aster has greater potential for future price growth.
Speculative interest soars again
Significantly, Aster recently dropped after the market was overleveraged, leading to a long squeeze. In fact, the altcoin recorded $37 million in total liquidation between the 3rd and the 4th of November.
Source: CoinGlass
This period saw $33 million in longs liquidated. Despite these incidents, investor participation in the perpetuals has recovered significantly.
According to Artemis, Perpetual Transactions surged to a three-week high of 5.6 million, while Perpetual volume bounced back to $13.3 billion, at press time.
Source: Defillama
Typically, when transactions and volume rise in tandem, it indicates strong speculative interest with more capital flowing into perps.
Thus, market participants expect significant price movements as they aggressively take strategic positions, either shorts or longs.
Can Aster build on the momentum?
As expected, Aster rebounded on its price charts as whales turned to spot accumulation and perpetual participation recovered.
In fact, at press time, Aster rallied 20.68%, successfully defending $1 support, hitting a high of $1.07 before retracing to $1.03, indicating clear bullish dominance.
As a result, the altcoin’s Directional Movement Index (DMI) made a bullish crossover, hiking from 18 to 20.
Source: TradingView
Usually, when a positive index flips negative, it signals strengthening upward momentum and a weakening downtrend.
Therefore, if the momentum from the past day holds, Aster could make further gains on its price charts. At current levels, trend continuation suggests Aster will target its Parabolic SAR at $1.2.
However, if sentiment on perpetuals reverses as participants close positions, the bubble will burst first, and we could see Aster retrace to $0.9.
