Aster (ASTER) extended its price recovery, reaching a two-month high of $0.78 before retracing. At press time, ASTER was trading at $0.74, up 7.48% on the daily charts.
At the same time, the altcoin’s trading volume soared 342% to $344 million, indicating high market activity. Aster recovered, mainly thanks to speculation about Binance new product, Haystack, scheduled to launch on June 1st.
Community buzz focused on anticipation that the product would involve tokenized stock trades or other stock products. These products will directly benefit ASTER via its perpetual exchange open 24/7.
As a result, traders rushed to the market to accumulate and position themselves strategically, waiting for the major reveal. However, Binance has not yet clarified which products will be launched, leaving the crypto community to speculate.
ASTER whale opens $1.4 million investment
With the altcoin showing strong upside strength, demand for futures positions, especially from whales, has recovered significantly.
Lookonchain reported that a whale, after suffering heavy losses from HYPE shorts, switched to ASTER. The whale then opened a 5x leveraged long position in 1.98 million ASTER worth $1.4 million.
With ASTER down $0.78, the whale has already lost $20,000 and spent $129 in funding during the volatility. The long reversal of the whale indicates strong market confidence and an eye on the continuation of the current trend.
Demand for futures contracts increases
In addition to this whale, investors have shown an increased appetite for leveraged positions. As ASTER showed strong bullish momentum, traders continued to open new positions.
As a result, the altcoin’s open interest (OI) increased 22% to $475.6 million, while derivatives volume soared 356% to $1.1 billion at the time of writing.
Such an increase in OI and volume confirmed this new demand for futures positions. Meanwhile, the Long/Short ratio jumped to 1.008, with the Binance ratio holding above 2.
With the ratio reaching such high levels, this suggested that traders were primarily opening long positions. Higher demand for long positions indicates that traders were optimistic that the market would continue to rise.
Can demand help ASTER sustain its recovery?
ASTER’s bullish momentum has strengthened considerably, driven by the increase in speculative demand. Altcoin momentum indicators validated this strength.
In fact, at press time, the positive index (+DI) of the Directional Movement Index (DMI) rose to 38, while the ADX surged to 28. With the ADX and +DI increasing in tandem, this reflects strong bullish momentum.
At the same time, the Stochastic RSI also increased to 75, further confirming the strength of the trend. These two indicators show that the trend is likely to continue.
So, if the community hype continues, ASTER is likely to break through the $0.79 resistance, return $0.8, and aim for $0.90. However, if the speculation fades, the altcoin will drop to $0.67.
Final summary
- Aster printed double-digit gains, hitting a two-month high of $0.78 before falling back slightly to $0.74 at press time.
- ASTER bounced backlargely driven by speculation about Binance’s new product, Haystack,.
