Analyzing ASTER’s 5-month low: Can the $0.5 support hold?

On the 31st of January, the crypto market experienced one among its greatest sell-offs, shedding extra than $200 billion in market price. Altcoins posted valuable losses, falling below $200 billion in market capitalization.

Amid this dip,  smaller altcoins corresponding to ASTER were hit the toughest. After the market rupture, ASTER fell to a four-month low of $0.507 sooner than a small bit rebounding. 

As of this writing, Aster [ASTER] traded at $0.552, down 7% on the day-to-day charts, extending its week-long bearish vogue. Following this market hasten, AsterDex rushed in to rescue the altcoin from additional slippage.

AsterDex prompts strategic reserve buyback fund

Following ASTER’s contemporary low, AsterDex activated the Strategic Reserve Buyback Fund. Below this procedure, day-to-day platform payments and the closing funds will be allocated immediately to focused buybacks.

In doing so, the team aimed to toughen the token’s long-term price whereas also offering incentives to ASTER holders. In spite of the complete lot, AsterDEX has aggressively repurchased tokens over the past four months to preserve shut in market tension. 

This means that, the team purchased 248.08 million ASTER tokens, valued at $137 million, representing 1.6% of the circulating present with the exception of burns. 

For the duration of the continuing season 5, they purchased 38 million ASTER for $24 million. Over the last 24 hours, the team supplied 2.9 million ASTER for $1.6 million.

The ongoing buyback, especially staunch via a duration of unsuitable market stress, demonstrates the team’s dedication to the initiatives and long-term conviction.

Selling tension persists across the market

Despite the token buyback initiative, market participants remain unconvinced, in particular given contemporary occasions. As such, traders across the Futures and Dwelling aspects appreciate continued to exit the market.

Following ASTER’s decline, patrons preserving long positions experienced wide liquidations. In accordance with CoinGlass records, long liquidation surged to a 3-month excessive of $15 million.

The soaring liquidation accelerated ASTER’s design back tension, ensuing in additional losses. In response to a weakening market, patrons stupefied and started closing positions.

In spite of the complete lot, the altcoin saw $253.8 million in Futures outflows, when in contrast with $216 million in inflows. This means that, Futures Netflow fell 502% to -$36.9 million, a clear signal of aggressive Futures dumping.

On the location aspect, sellers extended their week-long dumping spree with sell quantity leaping to 79.6 million over the past 24 hours.

The last time ASTER saw such a excessive sell quantity used to be extra than a month in the past, reflecting valuable bearish dominance.

With sellers dominating every situation and futures markets, ASTER is in a weakened station and would possibly perchance well lumber additional.

Can buybacks preserve shut in tension?

Despite continued token buybacks and activation of the reserve fund, downward tension has overwhelmed the market. In the quick term, the team’s query appears insufficient to preserve shut in the rising selling tension.

In spite of the complete lot, the altcoin’s Relative Strength Index (RSI) made a bearish crossover and dropped deeper into the bearish zone. At press time, the RSI stood at 35, advance the oversold space, indicating vendor dominance.

Likewise, ASTER traded below all three Provocative Averages (20.50, 100, and 200 EMA), indicating sustained design back momentum.

These market prerequisites point out ASTER would possibly perchance well continue the vogue, doubtlessly breaching the $0.5 toughen stage. If token buybacks are effective and gives a boost to quick-term query, the altcoin would possibly perchance well reverse the vogue.

For a valuable vogue reversal, the altcoin must disagreeable above the 20- and 50-day EMAs at $0.64 and $0.73, respectively.

Most attention-grabbing Thoughts

• Aster dropped to a five-month low of $0.507, following the market rupture, then rebounded a small bit. 
• AsterDex officially activated the Strategic Reserve Buyback Fund for ASTER.