ASTER surged on August 21st, driven by the market’s optimism about decentralized perpetual exchanges. After Trump’s announcement that the CFTC is working on bringing Hyperliquid to the U.S. market, ASTER rallied heavily.
The renewed U.S.-Canada trade war caused the market to change first. In response, the crypto market as a whole retraced.
ASTER, which had fallen from $0.77 to $0.61 before retracing, broke through the $0.7 level of support and plunged down. This marked a drop of 15%.
ASTER has fallen 8.3% on the charts since this article was written. During the same time period, altcoin trading volumes dropped by half, which indicates a reduced level of market activity.
The rising risks of liquidation in ASTER trigger panic outs
You can also read our article on After ASTER Traders who had been anticipating a continued rally were forced to leave the market when the price dropped.
The liquidation rate of long-term positions has increased significantly. Long positions were liquidated for over $4.6 million in the past 24 hours.
Fearing liquidation, other traders hurriedly closed their positions. CoinGlass reported that ASTER’s open interest dropped 18.8% from $309.1 to $434.
The simultaneous drop in OI and the volume of trades suggested traders were actively trying to reduce their exposure. The market exits are more common when compared to the Futures Outflows and perps.
Coinalyze’s data shows that Perpetuals Buy Volume dropped from 17.8 to just 17,8. Delta volume fell to -10,2 million and net buying was at -28, showing aggressive selling.
Futures inflows were down to $66.6 Million while outflows reached $80.4 Million.. The Netflow dropped to –Further confirmation of this sale is 13.76 Million.
It is an indication that the speculative market has changed. When these traders leave the market it is common for price shock to occur, resulting in price declines.
How long can altcoins withstand the pressure?
ASTER has seen its bullish momentum significantly weakened by the intense selling pressure. The altcoin’s Relative Strength Index dropped from 87 to 54.
It is likely that the drop in price to these levels indicates an eroding market with intense sales pressure. Since it is still above 50 it indicates that there are buyers still actively engaged and that sellers still haven’t fully taken over the market.
The RSI will fall below 50 if the pressure persists, which confirms the trend. ASTER’s price will fall below $0.6, while $0.59 is the main support.
For this bullish forecast to be invalidated, an altcoin must have a close of the day above $0.65.
Final Summary
- ASTER plunged from $0.77 and breached support at $0.7. The price plummeted to as low as $0.61. This marked a drop of 15% before it began to rise.
- The following are some of the ways to get in touch with each otherSTER fell as $4.6m in liquidations triggered a panic-like exit across the derivatives markets.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: ambcrypto.com
