Key takeaways
What Triggered Aster’s Sharp Price Drop to $0.85?
Rumors that Binance founder CZ would sell 35 million ASTER tokens caused panic and aggressive selling.
What signals suggest Aster could recover up to $1?
Contested selling requests and growing buyer interest could help absorb selling pressure and fuel a rebound.
Aster (ASTER) fell 19% from $1.05 to a 2-month low of $0.85 before rebounding to a high of $0.93. At press time, Aster was trading at $0.92, down 7.92% on the daily charts and 18% on the weekly charts.
But why is Aster broken today?
Binance Founder CZ Sell Rumors
The crypto community was abuzz with explosive rumors that Binance founder Changpeng Zhao (CZ) had sold his Aster holdings.
According to Farzad, the CZ-linked wallet sold 35 million Aster tokens worth $30.42 million. As a result, the price of Aster collapsed massively as investors and holders panicked and sold.
However, Aster began to recover after Lookonchain and other reliable monitors disputed these claims.
According to Lookonchian, the $34.53 million transfer of 31.84 million ASTER occurred between Binance hot wallets and had nothing to do with CZ’s wallet.
Aster hit by massive spot sell-off
It is important to note that following the CZ liquidation rumors, other investors panicked and turned to aggressive selling.
According to Coinalyze, Aster recorded 107 million in selling volume at the time of writing, compared to 103 million in buying volume in the last 24 hours.
Source: Coinalyse
As a result, the altcoin recorded a negative buy-sell delta of -4 million, signaling aggressive spot selling.
On top of that, Aster’s top addresses also increased their spending, offloading 35.6 million tokens.
Source: Nansen
Historically, increased selling pressure among market participants has preceded sustained downward pressure, resulting in lower prices.
Futures Liquidations Hit 2-Week High
When the market crashed, investors in the futures market either closed their positions or were forced to liquidate them.
Futures liquidation skyrocketed to a two-week high of $8.5 million, according to CoinGlass data. Amid this, long positions worth $8.2 million were liquidated.
Source: CoinGlass
On top of that, futures outflows jumped to $552 million, compared to $509 million inflows. As a result, Futures Netflow fell into negative territory, reaching a low of -$42 million, a clear sign of increased sales.
Source: Coinglass
A sustainable recovery in sight?
According to AMBCrypto, Aster declined after holders and investors panicked and sold amid Binance CZ sale rumors.
As a result, the altcoin’s stochastic RSI fell from 26 to 12 at press time, signaling increasing seller dominance.
Likewise, its Relative Vigor Index made a bearish crossover, falling to -0.138, indicating strengthened bearish momentum.
Source: TradingView
Typically, when these indicators fall to such levels, they signal strong downward momentum and the possibility of the trend continuing.
Therefore, if sellers continue to dominate, Aster will find support around $0.9. However, if the bulls retake their positions and increase demand, they could absorb the selling pressure.
In doing so, the recovery trend seen after the recent rumors were challenged will continue, which could allow Aster to reclaim the $1 resistance level.
