Aster Token Faces Resistance at $1.10: Signs of a Dead-Cat Bounce

The Aster token has struggled to break through a significant resistance level at $1.10, resulting in a sharp rejection that raises concerns about its recent price rally being merely a short-lived recovery. As trading volume weakens, the risks of a deeper price correction increase, prompting traders to keep an eye on the market's overall downtrend.

Key Takeaways

Aster token price has failed to reclaim the critical $1.10 resistance level.
The lack of strong bullish volume indicates the recent rally may be a dead-cat bounce.
The next key support level is around $0.92, which could be a crucial point for investors.
Continued failure to surpass $1.10 suggests a bearish continuation in price action.

Aster price failed to reclaim key resistance, hinting a correction.

Analyzing Aster Token's Recent Performance

Aster token price fails to reclaim $1.10 volume resistance, signaling a dead-cat bounce. - 1
ASTER (6H) Chart, Source: TradingView

The recent rally of Aster initially looked promising; however, crucial data reveals that it lacked essential bullish volume required for further growth. Without sustained buyer interest, advances into significant resistance levels like $1.10 tend to falter quickly, which is exactly what occurred here.

When Aster attempted to reclaim the $1.10 resistance, it faced immediate selling pressure that led to a significant rejection. The $1.10 level is the point of control, representing the highest volume node in Aster’s trading range, making it a critical pivot point. Historically, the price has reacted strongly at this level—either breaking through to bullish expansions or triggering substantial sell-offs when rejected.

The latest market response echoes previous bearish retests, where Aster struggled to maintain its position above the point of control, typically followed by a significant downward movement. Given this historical pattern, there's an increased likelihood that we could see a similar situation unfold again, potentially driving the price down toward the next strong support level near $0.92. This area has previously provided structural support during declines and remains an important point for traders to watch.

As the market continues to produce lower lows and highs, the path of least resistance appears to lead downward. Some traders have speculatively questioned whether prominent figures like Changpeng Zhao may influence the market in a Musk-like fashion with Aster, but this has not affected the immediate technical outlook.

The current setup resembles a dead-cat bounce—a term used when a price temporarily rises due to short-term buying or covering of short positions, only to quickly reject and continue the overall bearish trend. Aster's recent rally appeared impulsive but was unsustainable due to the absence of solid volume. Once the price reached the point of control, the market swiftly rejected it, halting the upward movement and bringing the price back into the prevailing downtrend.

Additionally, there is a bearish order block just below the $1.10 resistance. The latest test of this zone led to an immediate rejection, confirming its strength. On-chain analysis has debunked allegations regarding a $35 million Aster transfer involving Changpeng Zhao, which shows that the recent downturn stems from technical factors rather than news-related influences. A potential second test of the $1.10 level might result in another rejection, further solidifying the bearish outlook and indicating that sellers are regaining control.

What’s Next for Aster Token?

As long as the Aster token remains below the $1.10 point of control, the likelihood of further bearish action increases. The next key support level is positioned at $0.92, which could serve as a vital target unless a significant increase in bullish volume allows the market to reclaim resistance and shift momentum positively.