Examining Aster's Three-Day Price Fluctuation: Can Bulls Regain $1.28?

Aster surged 38% after Changpeng Zhao's (CZ) tweet about his purchase, but lost all gains as Bitcoin dropped below $108K in local support.
The previous swing high of $1.28 remains unattained, suggesting bears could initiate another significant price drop.
On November 2nd, Aster [ASTER] increased from $0.928 to $1.285 following CZ’s announcement.
A subsequent sell-off on November 3rd and 4th erased all gains, pushing Aster down to a low of $0.818.
Currently, Aster is trading at $1.06, crossing the important psychological $1 mark. The question now is whether this signifies the beginning of a sustained upward trend or if it is merely a reaction to Bitcoin's market sentiment.

Key Takeaways

Aster surged 38% after Changpeng Zhao's (CZ) tweet about his purchase, but lost all gains as Bitcoin dropped below $108K in local support.
The previous swing high of $1.28 remains unattained, suggesting bears could initiate another significant price drop.
On November 2nd, Aster [ASTER] increased from $0.928 to $1.285 following CZ’s announcement.
A subsequent sell-off on November 3rd and 4th erased all gains, pushing Aster down to a low of $0.818.
Currently, Aster is trading at $1.06, crossing the important psychological $1 mark. The question now is whether this signifies the beginning of a sustained upward trend or if it is merely a reaction to Bitcoin's market sentiment.

Aster recovers the psychological $1 level, gains 21% within a day

Aster Develops a Bullish Pattern

Aster 1-hour Chart

Source: ASTER/USDT on TradingView

On November 4th, Aster moved past the previous supply zone of $0.92, which has now turned into a support level. The token breached the local swing high of $0.97, indicating a flip from a bearish to a bullish structure in hourly trading.

As of now, Aster appears to be on a recovery path, with the Money Flow Index (MFI) showing upward movement above 50. This indicates a build-up of bullish momentum and buying interest. Additionally, the On-Balance Volume (OBV) has also shown higher lows and highs, indicating consistent buying pressure over the last 24 hours.

However, traders should be cautious of Fibonacci retracement levels at $1.1 and $1.185, which act as resistance points. With Bitcoin in a continuing downtrend, Aster's bulls must remain vigilant to avoid a potential reversal that could erase recent gains.

Insights from Institutional Investors

On November 3rd, Lookonchain reported that a whale made a deposit of $500,000 into Hyperliquid to take a 3x long position on ASTER, with a liquidation price set at $0.7188. In another notable move, a whale who previously gained substantial profits from the meme coin Pepe [PEPE] invested $4.21 million in ASTER.

However, not all large investors are bullish; some are adopting bearish stances. The $1.28 swing high remains a crucial level for Aster bulls to reclaim as their support. Until that occurs, long positions could be exposed to considerable bearish reversals, notwithstanding the technical indicators suggesting a short-term bullish outlook.

Disclaimer: The information provided here is not intended as financial, investment, trading, or any other type of advice, and reflects solely the writer's perspective.