Key takeaways
Can ASTER reverse October losses?
The bulls tried to set a bottom at $1, so a recovery may be possible if broader market sentiment improves.
Could a buyback become a catalyst for recovery?
The spot market has been flat and has yet to gain momentum to confirm the update as a catalyst.
Aster [ASTER] It announced another round of token buybacks, but bulls remained unmoved.
On October 29, the Perpetual DEX powered by YZi Labs was launched He said They will use up to 80% of the trading fees to pay the latest buyback program.
The first “deflation” campaign. It happened About two weeks ago. I reaped 100,000,000 Aster Codes on October 10.
But this was on the same day that the market witnessed a sudden collapse that led to the liquidation of over $19 billion. Therefore, using the previous mover to measure the previous price reaction of ASTER would be useless.
What’s next for ASTER price?
However, the excitement was less after the latest update.
In fact, a critic to reply,
“Maybe they write it wrong, this is a resale, not a buyback.”
The user wished to burn the tokens instead of keeping them in a buyback address for future sales.
Meanwhile, the ASTER index fell about 2.5%, which is likely to accelerate due to the FOMC meeting with risk aversion. However, the altcoin fell nearly 60% from its record high of $2.4 to around $0.90.
Source: Aster/USDT, TradingView
While there was an attempt to identify the $1 area as the bottom, the technical chart indicators were still bearish.
For example, on-balance volume (OBV) declined and remained flat without any appreciable recovery to indicate a potential recovery in prices.
Likewise, the Relative Strength Index (RSI) on the 12-hour chart has been struggling below the average level since October 10. In other words, short sellers still have a market advantage, at least as of writing.
Calm before the storm?
On the supply and demand side, Arkham Data It showed that the market was neutral with no selling and no buying demand.
In contrast to the surge in flows to cross-chain exchanges in late August and early October, activity has collapsed and stagnated in the past few days.
This means that more tokens have moved to on-chain exchanges (sell pressure) but have diminished and gone sideways. In other words, the spot market was neutral to bullish, judging by cross-chain exchange flows.
Source: Arkham
On the derivatives side, leveraged traders have been surprisingly bullish. In the past 24 hours, they trimmed long positions by just 1%, perhaps to avoid risk against the FOMC meeting.
But generally, long positions commander By a whopping 77%, which is a strong addition in the past five days. Taken together, leveraged players have been bullish, but the spot market has yet to turn positive for a sustained recovery.
Source: Coinglas
