- The Astar community completed voting on the token burn proposal on June 2nd.
- Before the mid-June price crash, ASTR had been trading below $0.070 in late November.
At the time of writing, ASTR was down 6.63% along with the broader cryptocurrency market amid concerns that the U.S. inflation outlook may be worse than expected.
The recent price movement comes just a day after the Astar community voted to burn 350 million ASTR tokens, representing 5% of the total genesis supply.
ASTR Token Burn Execution Timeline
The Astar Foundation has set aside tokens for the Polkadot parachain auction, a mechanism for projects to secure parachain slots on the Polkadot (DOT) relay chain.
Blockchain projects essentially submit bids to the relay chain in DOT native tokens as part of a candle auction process to determine which bids will be tied to a parachain slot for a given lease period.
However, Polkadot announced that it will phase out the parachain auction system in November 2023 and replace it with Agile Coretime or Bulk Coretime.
According to the updated mechanism, Astar Foundation Proposed As part of our strategy to improve ASTR’s token economics, we are removing allocations from circulation.
The 74 million ASTR rewards from this initial token allocation will be held in the community treasury and used to support other initiatives.
Maarten Henskens, CEO of Astar Foundation Confirmed The proposal passed the voting phase, and the execution phase of the token burn will begin this weekend, he added.
ASTR/USDT Technical Analysis
The price of ASTR briefly surged on news of the election results, reaching an intraday high of $0.0791.
CoinMarketCap data ASTR’s 24-hour trading volume surpassed $78 million on Tuesday, up from $20 million on Monday.
On some exchanges, including Binance (BNB), ASTR traded as high as $0.80 before reversing the downtrend and recording losses.
ASTR has since been in a downtrend and was one of the worst performing tokens on the day, down around 7% at $0.0705 at the time of writing. The ASTR/USDT chart shows the price downtrend over the past two weeks.
Source: TradingView
Over the weekend, ASTR/USDT fell below $0.069, emphasizing a two-week uptrend that began on June 17 when it fell above $0.075.
Source: TradingView
The ASTR/USDT 4-hour chart shows that ASTR price has established support near $0.063 as it attempts to break out of the current lower range consolidation.
Source: TradingView
ASTR price remained below the 23.6% hourly Fibonacci lower correction level ($0.0732).
Bullish investors can find key support at $0.0745, the 0.382 Fibonacci level, on the way to the important Fibonacci level of 0.0767, where a price reversal is expected.
A potential upside beyond this target would likely be a strong test near the 0.786 Fibonacci level of $0.0782.
ASTR showed signs of overheating on the hourly chart earlier this week, with the RSI crossing 70 on July 1.
Source: TradingView
However, the RSI is trending below 50, currently at 34.98, after the cryptocurrency market has been down for the past 24 hours. A reading below 30 provides an ideal entry opportunity for a short-term position.
Ecosystem Growth
Astar Network has been continuously developing its ecosystem, recently launching Astar zkEVM.
Polygon’s L2 scaling solution leveraging zero-knowledge technology makes it the first blockchain to integrate Polygon’s cutting-edge technology, AggLayer.