Market Context
The broader cryptocurrency market is experiencing a mild pullback today, with Bitcoin (BTC) and Ethereum (ETH) slipping into the red, and ETH dropping by over 3%. This short-term correction is slightly pressuring several altcoins, including Aster (ASTER), a leading DEX-focused token.
Technical Analysis: Rounding Bottom Formation
While ASTER has dipped by over 5%, the chart reveals a classic bullish pattern taking shape, one that could set the stage for a potential rebound in the coming sessions. On the 4-hour chart, ASTER appears to be carving out a rounding bottom formation. This is a well-known bullish reversal pattern that often signals the transition from a downtrend into a new uptrend.
As observed on the chart, ASTER's price dropped from its recent local high of $1.22 and declined to test the bottom support zone near $1.0381. This level has acted as a crucial demand area where buyers have started to step back in. Currently, the token is trading just above that support at $1.0679, showing early signs of resilience and potential stabilization.
Potential Upside and Risks
For the rounding bottom pattern to fully confirm, ASTER needs to rebound from its current support and reclaim the 100-hour Moving Average (MA) at $1.2076. A clean breakout and close above this level would likely act as a trend confirmation signal, paving the way for a retest of the neckline resistance zone between $1.50 and $1.60. If bulls manage to break through that zone, the move could trigger a strong bullish rally, potentially marking the start of a sustained uptrend.
However, it is important to note that as long as ASTER remains below its 100-hour MA, the setup still carries downside risk. A failure to hold the $1.0 support could delay the bullish reversal and lead to short-term consolidation.