A Confluence of Technical Support

Aster (ASTER) is currently trading at a pivotal support zone, where a combination of key technical indicators suggests a bottom may be forming. The asset is holding a support cluster created by the 0.618 Fibonacci retracement level, the volume point of control, and a major daily support line. Historically, these multi-layered support zones have acted as strong foundations for significant price expansions for Aster.

Market sentiment has also shown signs of improvement after recent on-chain data refuted allegations of a $35 million ASTER transfer linked to Changpeng Zhao. This development has helped calm speculation and allowed the focus to return to the project’s technicals, where slowing selling pressure and growing volume at current lows indicate a potential shift in momentum.

The Elliott Wave Scenario

The price action hints at the early stages of a bullish Elliott Wave structure. A sharp bounce from the value area low, followed by a break in the immediate market structure to form a new swing high, is a classic signal for an Elliott Wave transition. For this pattern to be validated, Aster must now establish a higher low within the current support range. This would confirm the completion of a Wave 2 retracement and set the stage for an impulsive Wave 3.

Wave 3 expansions are typically the most powerful phase in an Elliott Wave cycle. If this structure unfolds, the initial target would be the high-time-frame resistance at $2.30, a level that has historically been a primary reaction point for the asset. A successful rally to this level would solidify the bullish reversal pattern.

Potential Price Action

From a technical perspective, Aster sits at a critical juncture. If the current support level holds and a higher low is confirmed, the asset could trigger a significant breakout toward the $2.30 resistance. However, a failure to hold this support would invalidate the bullish Elliott Wave structure and likely lead to a new downward trend, delaying any potential recovery.

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