Aster, a decentralized permanent exchange Aster native token, is struggling to maintain momentum after reaching an all-time high of $2.43 on September 24th.
Since then, Altcoin has eliminated 25% of its value, and technical indicators show further downside risks.
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Weak demand puts Aster prices at risk of further losses
On-chain signals indicate a sustained weakness in buyback demand, increasing the risk that cryptocurrencies will face deeper losses if market sentiment does not improve.
The long/short ratio of Altcoin has steadily declined over the past few days, highlighting the increasing negative bias among futures traders. At the time of this writing, the long/short Aster ratio is 0.92, remaining a lower trend.
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The long/short ratio measures the percentage of traders holding a long position (a bet that the price of an asset increases) relative to those holding a short position (betting that the price drops).
A ratio above one indicates that more traders are hoping for upward momentum, reflecting bullish sentiment in the derivatives market. Conversely, below is a signal that most participants are betting on even more negative aspects.
Aster’s long ratio confirms that shorts dominate the market, with more traders positioning themselves for price drops rather than recovery. This could lead to further loss of confidence, which could lead to a further downward value for Altcoin.
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Additionally, on the 4-hour chart, the token accumulation/distribution reduction (a/d) line confirms the decline in purchasing rights.
This indicator tracks the relationship between asset prices and trading volumes, highlighting whether traders are leaning towards accumulation or distribution.
If this falls, investors are limited in their interest in holding their assets at a higher price level, putting Aster at risk.
Aster price teaser near important floors
At press time, Aster trades for $1.8198 and turns right for $1.7119 on the support floor. As demand weakens further, this price level gives way and opens a door deep into $1.4882.
Meanwhile, new demand enters the market, allowing prices to rise above the $2.0303 resistance and towards $2.1650. Violations above this level could boost Aster’s price and revisit the all-time high of $2.436.
