- Large investors offloaded millions of ASTER tokens, absorbing a 22% loss in less than two weeks.
- ASTER price has fallen below a key level, indicating a bearish short-term bias.
- The Aster team allays supply-side concerns by confirming that they have no plans to sell unlocked tokens.
Digital asset markets continued to deteriorate on Wednesday, with the global cryptocurrency market capitalization reaching $2.94 trillion after falling 0.65% over the past 24 hours.
Additionally, Bitcoin remained somewhat quiet on its final day after its recent downturn, falling just 0.30% on the daily chart before changing hands at $86,640.
While most altcoins are looking for ground after recent widespread crashes, ASTER is experiencing new selling momentum as large players exit.
The digital token has lost nearly 10% of its value in the past 24 hours, highlighting its overwhelming downward momentum.
According to Lookonchain, one whale sold 3 million Aster coins, currently worth about $2.33 million.
The company executed the transaction when the alt token was trading at $0.78 per token.
Notably, the whale accumulated these tokens just two weeks ago and has now lost about 22% (or $667,000).
These moves are often about more than just bad trades.
Whale investors generally have a high risk tolerance and seek to hold on to an asset for the long term until it strengthens.
Therefore, when large investors capitulate with losses, it may be a sign of a lack of confidence in a near-term price rebound.
Moreover, this exit coincided with a significant price decline in ASTER, amplifying the prevailing bearish sentiment.
ASTER Price Analysis
Aster’s native token is trading at $0.7475 after losing more than 8% of its value in the last 24 hours.
Daily trading volume increased by almost 45%, indicating increased activity from participants before further declines occurred.
Meanwhile, ASTER has broken through the important support zone of $0.81 – $0.82 and is poised to turn it into the indirect supply zone.
This represents tremendous weakness, and a potential bounce to $0.80 would likely result in significant selling pressure.
Sellers are targeting the $0.72 barrier, where ASTER paused during its previous decline.
Failure to attract adequate buying activity at these levels could lead to a further decline of the altcoin into the psychological zone of $0.70 in the near term.
Meanwhile, ASTER needs to claw back $0.82 to turn bullish.
A break above $0.85 in massive volume could lead to a breakout to $0.90 and a path to $1.
The Aster team fosters trust in the community.
Amid massive downward pressure, DEXs have turned their attention to supply dynamics.
Early this morning, December 17th, the team visited X to address these issues and confirmed that December’s community and ecosystem token unlocks have been completed.
They moved their unlocked assets to an address that currently holds 235.2 million Aster coins three months after the coin’s launch.
In particular, Aster emphasized that there are no immediate plans to use unlocked ASTERs and that the team will communicate proactively if there are future deployment plans.
While the announced transfer does not add any new supply to the circulating token, it comes amid heightened uncertainty, with traders worried about further selling pressure as major holders capitulate.