Aster extended its decline today, falling another 13% to $1.64. The token is now down 18% over the last seven days and nearly 33% from its all-time high of $2.43, reached less than a week ago. However, despite the correction, ASTER still remains up more than 1800% since launch.
The current price action suggests a shift in sentiment as momentum fades and technical support levels begin to break. The sell-off comes amid increased scrutiny of token distribution and uncertainty around upcoming unlocks, with added pressure from a broader market correction.
Read also: Is Aster Safe? Growth Continues, But Critics Raise Questions
Indicators Signal Weakness, But Oversold Conditions Near
On the 4-hour chart, ASTER is trading below all key short-term moving averages, now sitting above $1.74. The RSI has dropped to 38, approaching oversold territory. The Stochastic RSI sits even lower, near 17, confirming weakened buyer interest.
Momentum indicators, including the Awesome Oscillator (AO), remain negative. If the downtrend continues, the next major Fibonacci support is at $1.41. A breakdown below that could open the way to $1.13. On the upside, a recovery above $1.85 would be needed to regain short-term bullish momentum.
Market Sentiment Shifts, Short Positions Climb
Data from Coinglass shows a growing bearish bias among traders. The long/short ratio has slipped to 0.91, with more participants betting against the token. Declines in the Accumulation/Distribution Line also reflect weaker demand, suggesting fewer traders are buying dips at current levels.
The drop follows recent clarifications from CZ, who stated Binance has no official involvement in the project. While his venture firm YZi Labs holds a minor stake and several ex-Binance employees are involved, CZ emphasized he is not part of the core team.
Institutional Interest Adds Mixed Signals
Despite the downtrend, some large buyers appear to be active. Reports indicate BlackRock purchased $10 million worth of ASTER via OTC during the pullback, sparking debate over whether this reflects confidence or calculated accumulation amid low liquidity.
The project continues to post strong trading volumes – over $80 billion in perpetual activity was recorded this week – but skeptics warn this may not be sustainable once airdrop incentives slow. With another 320 million tokens set to unlock soon, near-term price pressure remains a risk.
Read also: How to recognize a crypto presale scam? Full guide
Outlook Hinges on Support Zones and Unlock Timing
ASTER now trades in a critical range. Holding above $1.60–$1.65 may allow for a short-term rebound, especially with oversold signals building. But if this level fails, the next support around $1.41 will be closely watched.
Market focus is now shifting toward the October 17 token unlock, which will introduce $325 million worth of new supply. How the token handles that release – and whether retail and institutional demand returns – will likely determine whether this is a temporary reset or the start of a deeper trend change.
