Aster Increases Buyback Rate by 50% to $7.5K per Minute — Will Bulls Protect the $1 Level?

Aster's recent increase in buyback rates has sparked significant market activity, pushing the price of ASTER and boosting trading volumes. As the price hovers around the $1 mark, traders are closely watching for potential moves toward higher resistance levels.

Key Takeaways

The buyback rate surged by 50%, resulting in $39 million spent and the burning of 18 million tokens, which reduces supply and helps support price movements.
If ASTER remains above $1, there could be a push towards resistance levels at $1.17 and $1.23.
Aster (ASTER) saw an 11.36% rise, reaching a local high of $1.16 before slightly retracing to $1.11 at the time of this report.
Trading volume increased by 90% to reach $667 million, indicating growing demand and capital influx.
The reason behind this price increase is a focus of interest.

Aster Buybacks Fuel New Market Energy

After a period of inconsistent price activity, the Aster team decided to boost their token buyback rates significantly. The buyback amount expanded from $5,000 per minute to $7,500, marking a notable 50% increase. If sustained, this means the Aster team could spend $10 million daily on token buybacks. To date, they've acquired 2.4 million ASTER in the last 24 hours alone, along with spending a total of $39 million on 37.7 million tokens since launching the buyback program.

Aster token buyback Source: Asterlify

Approximately half of the tokens purchased in the buyback have been burned, decreasing the circulating supply by about 18 million tokens. This strategic move aids in reducing supply and stabilizing prices.

Rising Spot Demand

In the wake of the buyback news, activity picked up in the Spot market. ASTER's Spot Netflow has decreased for the third consecutive day, sitting at –$8.04 million, as outflows ($129.28 million) surpassed inflows ($121.24 million). This negative netflow suggests that traders are focusing on accumulation, opting to hold their tokens rather than depositing them on exchanges.

Aster spot netflow Source: CoinGlass

Futures Traders Seeking Opportunities

As Aster indicates a potential recovery, many investors are turning to perpetual contracts to position themselves effectively. Data from Artemis shows a rise in Perpetual Transactions to 4.7 million, with Perpetual Volume climbing to $11 billion.

Aster Perps volume & transactions Source: Artemis

An increase in both volume and transactions suggests heightened participation and capital movement into the futures market. This trend has led some investors to either take short or long positions in anticipation of market direction. The Long/Short Ratio increased to 3.83, indicating that 79.28% of traders held long positions, suggesting optimism for further price increases.

Aster long short ratio Source: Coinalyze

Is ASTER Likely to Maintain Levels Above $1?

The Stochastic Momentum Index (SMI) has risen to 18, which indicates stronger buyer momentum. If this trend continues, ASTER may successfully breach the next resistance points at $1.17 (according to the Parabolic SAR) and strive for $1.23.

Aster SMI & SAR Source: TradingView

If demand wanes, prices could retreat towards the support level of $1.00, but as long as ASTER stays above this threshold, the bullish sentiment remains intact.