Aster’s share price has dropped by over 10% in the recent past to around $1.94. This is in contrast to an overall downtrend in the cryptocurrency market, with fears about the key $1.70 support level. This is a support level backed by technical levels such as the point of control and the 0.618 Fibonacci retracement.
Market Dynamics and Aster’s Recent Performance
Aster has been in a fixed price channel, often touching predetermined pivot points. After a new high of $2.43 in recent periods, the cryptocurrency has seen substantial selling pressure. This price adjustment is in accordance with the overall trend of the market because major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) have also faced downward pressure.
As the market becomes bearish, Aster’s price action shows that it is set for a potential correction phase. Aster’s response at the $1.70 support level will determine where it is going.
The Importance of the $1.70 Support Level
The level of $1.70 is critical to the price stability of Aster. Not only is it a psychological level, but it is also a critical technical level that includes both the point of control as well as the 0.618 retracement of Fibonacci. Resistance here may lead to reversal higher to the overhead resistance level of $2.70.
If Aster cannot hold this level, it will continue to decline, with possible support levels at $1.90 and $1.65 requiring to be tested.
Whale Activity and Investor Sentiment
In contrast to the price fall, whales’ activity has borne witness to a strong interest in Aster. Large holders have purportedly been purchasing tokens, evidence of faith in long-term viability of the asset. Recent data show a whale withdrawing 26 million ASTER tokens, valued at approximately $59 million, from an exchange, showing persistent demand in spite of corrections in the market.
This build-up could be extremely significant in defending the $1.70 level. If the buyers enter here at this turning point, it could be an opportunity for accumulation, and thus the bullish case becomes much more robust.
Aster’s price is at the crossroads at the $1.70 support level. With current market sentiment and overwhelming whale interest, the next few days will determine the outcome. If Aster maintains this support, it may be the beginning of a bullish resurgence to $2.70. A breakdown below this level, however, might create further downside risk.
