Decoding the Aster-Hyperliquid rivalry – Why THIS is critical for ASTER

Aster [ASTER] faced difficulty on the price charts. The short-term sell-off can be attributed to the market-wide volatility following Bitcoin’s [BTC] drop below $94.5k support.

The longer-term downtrend of the token was a reflection of market sentiment. In a post on X, Cryptorank showed that Hyperliquid [HYPE] was the more popular decentralized exchange among the two.

Hyperliquid is ranked first by volume and the 24-hour open interest. Aster needs to reclaim market share before its token performance can begin to reflect its position.

Aster threatens to make bearish structure break…once more!

Source: ASTER/USDT on TradingView

The 1-day chart was extremely bearish.

In mid-December, Aster fell below the psychological $1 support level, leaving behind an imbalance (white). This imbalance ranged from $0.83-$0.91. In the first week of January, the Aster token bounced toward this supply zone.

It was unable to test it, instead falling short at $0.813, marking it as the downtrend’s latest lower high. It should be noted that a price bounce beyond $1 was necessary to bring about the beginning of a bullish trend.

The technical indicators on the daily chart reinforced the seller dominance.

Moreover, the A/D indicator began to slide downward in the past two weeks. The Awesome Ostillator had made the faintest of bullish crossovers over the weekend before immediately being forced below the zero line once more.

The DMI, alongside the price making new lows, confirmed that a strong bearish trend was in progress.

What’s next for Aster?

In the coming days, another relief rally is likely. Aster has fallen a long way, and some respite is necessary. Based on the most recent drop, a set of Fibonacci retracement levels was plotted.

It showed that the 78.6% level at $0.695 had confluence with the $0.683-$0.703 supply zone. This region had previously been a demand zone that bulls defended over the past three weeks, but the recent flurry of selling has exhausted the buyers.

Traders’ call to action- Wait for the bounce

The higher timeframe chart confirmed the bearish bias of ASTER, while the lower timeframe price action indicated a potential price bounce. Previously, the bears demonstrated their strength when the supply zone at $0.83 was not even tested.

A similar situation as the failure to reach $0.83, with $0.68-$0.70 not being tested, is possible, especially if Bitcoin fails to bounce back above $94.5k this week.

A move beyond $0.81 and $1 is needed before long-term buyers can enter the market with some degree of certainty.

Final Thoughts

• Monday’s close below $0.658 would signal ASTER is headed for another downward leg on the price chart.
• Such a close could see the $0.68-$0.70 area tested as resistance before the $0.55 lows are targeted once more.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.