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- ASTER slipped 2.5% despite latest buyback program.
- Technical indicators remain bearish, showing weak short-term support.
- Derivatives traders bullish, but spot market stagnant.
Aster [ASTER], the YZi Labs-backed perpetual DEX, revealed another round of token buybacks. The platform plans to allocate up to 80% of trading fees to this program, signaling continued efforts to support its token. This follows the first “deflation” drive on October 10th, which scooped up 100 million ASTER tokens.
Despite these measures, market reaction has been lukewarm. Critics argue the buyback may be ineffective unless tokens are burned, rather than held for potential future sell-offs. ASTER slipped 2.5% following the update, likely impacted by risk-off sentiment from the recent FOMC meeting. From its all-time high of $2.40, the token has plunged nearly 60% to around $0.90.
The on-chain buyback is currently in progress and will continue daily until the target range of 70% to 80% of the trading fees generated during S3 is reached.
— Aster (@Aster_DEX) October 29, 2025
All buybacks are executed directly from the open market. The address used for buybacks will be disclosed once it's… https://t.co/xvZGWYiNSw
Technical Indicators Signal Bearish Pressure
Technical analysis suggests that ASTER’s short-term outlook remains negative. The On Balance Volume (OBV) has flattened, showing no meaningful recovery, while the 12-hour Relative Strength Index (RSI) has struggled below average since October 10th. These metrics indicate that short-sellers still control the market, and buyers have yet to step in with conviction.
Attempts to hold the $1 mark as support have been undermined by weak trading volume and limited buying interest. Without a clear surge in demand, any rebound may struggle to sustain momentum.
Spot Market Neutral Despite Derivatives Optimism
On-chain data from Arkham shows a neutral market on the supply-demand side. Unlike spikes in August and early October, recent on-chain flows into exchanges have stagnated. Spot trading remains sideways, hinting at a cautious sentiment among retail traders.
Also Read: ASTER Launches Token Buyback Amid $10 Forecasts
Interestingly, leveraged traders appear more optimistic. Long positions remain at 77%, reflecting confidence among derivatives players despite minor de-risking ahead of the FOMC meeting. However, with the spot market still inactive, this optimism alone is unlikely to trigger a sustainable price recovery.
Waiting for a Catalyst
ASTER’s buyback strategy has so far failed to inspire confidence or trigger a bullish turnaround. While derivatives traders remain hopeful, the flat spot market and bearish technical signals suggest caution. Investors will be watching closely for any shifts in buying demand or further updates from Aster to determine if the token can regain momentum.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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