The broader cryptocurrency market is experiencing significant volatility, leading to over $512 million in liquidations across major exchanges in the past 24 hours, with more than $389 million originating from long positions. This market turbulence has placed considerable pressure on major altcoins, including Aster (ASTER), which is currently trading in the red and has seen a decline of over 15% in the past week.
Despite this steep correction, the chart for ASTER is beginning to exhibit a technical setup that could indicate a potential breakout in the near term.
Falling Wedge Pattern Identified
On the 4-hour chart, Aster (ASTER) is currently trading within a Falling Wedge pattern. This chart formation is often recognized as a signal for potential trend reversals following extended periods of price decline. For several days, the token has been respecting the boundaries of this wedge, gradually consolidating its price movement towards the apex of the pattern.
Following a recent rejection from the descending wedge's resistance line, ASTER experienced a dip towards the lower boundary, approaching the support level around $0.885. However, at this point, buyer interest emerged strongly, successfully preventing further downward movement and initiating a robust rebound from the trendline support.
Currently, ASTER is trading near the $0.978 mark, positioned just below the wedge's resistance. The tightening price action suggests that ASTER is approaching a critical juncture and preparing for a significant price movement.
Potential Future Price Movements for ASTER
Should buyers successfully push ASTER's price above the wedge resistance and enable it to reclaim the 100-day moving average, which is currently situated at $1.054, this would likely signal the commencement of bullish momentum. A confirmed breakout from this pattern could pave the way for the next major price target situated around $1.30, a level that aligns with the measured move projection derived from the wedge structure.
Conversely, if the breakout attempt proves unsuccessful and sellers regain dominance, ASTER might retest the lower support region around $0.94 before attempting another upward move.