ASTER: How a $6.47 Million Whale Purchase Reinforced the $1 Support

Aster has shown promising signs of recovery following significant whale accumulation and increased speculative interest in both spot and perpetual markets. Despite a recent pullback in price, which saw Aster drop to $0.81 after a surge to $1.28, large investors have stepped in to defend the critical $1 support level.

Key Takeaways

Aster's recent rebound is attributed to strong whale accumulation and renewed interest in both spot and perpetual markets.
A negative shift in perpetual sentiment could lead to Aster retracing towards $0.9.
Following excitement from Binance founder CZ’s acquisition news, Aster briefly surged to $1.28, then encountered resistance, causing a price drop to $0.81 due to extensive profit-taking.
Notably, whales have come forward to support the $1 price point after the decline.

Whale Defends Key Support, scooping $6mln Worth of Aster: Any Impact on Price?

A Whale Steps In to Buy the Dip

Recently, whales who had aggressively shorted the market returned to make significant purchases of Aster. In just 24 hours, the spot market saw a Buy Volume of 327.16 million, according to Coinalyze data, showcasing a robust level of accumulation.

Aster buy sell volume

According to Onchain Lens, one notable whale sold 18.48 million ENA tokens for approximately $5.71 million. Despite incurring a $4.3 million loss from this sale, the whale then reinvested in AsterDex, spending $6.47 million on Aster. This move highlights a strong belief in Aster's future growth potential.

Renewed Speculative Interest

Aster experienced recent price drops due to an overleveraged market, which led to a series of liquidations — a total of $37 million was liquidated between November 3rd and 4th.

Aster liquidation

This period saw $33 million in long positions liquidated. However, interest among investors in perpetual contracts has rebounded significantly, with Perpetual Transactions reaching a three-week high of 5.6 million and total Perpetual volume climbing to $13.3 billion.

Aster perps volume

When both transactions and volume increase simultaneously, it signals heightened speculative interest, leading market participants to anticipate substantial price changes as they adopt strategic positions, whether short or long.

Can Aster Maintain Its Momentum?

As anticipated, Aster’s price charts showcased a rebound due to whale accumulation and revitalized perpetual participation. At the time of reporting, Aster had surged 20.68%, successfully maintaining the $1 support level and peaking at $1.07 before easing back to $1.03, indicating clear bullish momentum.

Aster DMI & SAR

The altcoin’s Directional Movement Index (DMI) also indicated a bullish crossover, rising from 18 to 20. Typically, a move from a negative to a positive DMI suggests strengthening upward momentum and a fading downtrend. Thus, if the upward momentum continues, Aster may strive toward its Parabolic SAR target of $1.2.

However, if the sentiment on perpetual contracts shifts negatively and positions are closed, Aster may face a retraction toward $0.9. This would indicate a potential end to the current rally.