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- Aster’s TVL dropped by over $362 million in a week.
- Trading volume fell to $78M, signaling user migration.
- Technical indicators suggest continued bearish momentum.
Aster (ASTER), the decentralized perpetual trading protocol, is facing growing pressure as traders turn bearish. Once viewed as a rising DeFi contender, Aster’s market position has weakened following a significant decline in usage and token value. Over the past week, the protocol’s Total Value Locked (TVL) dropped sharply, signaling fading investor confidence. According to DeFiLlama data, roughly $362 million worth of ASTER has been sold since October 13, erasing much of its previous bullish momentum.
Declining Volume Underscores User Exodus
Trading activity on Aster’s perpetual exchange has also slowed dramatically. In the past 24 hours, total volume fell to just $78 million—an alarming figure compared to rivals like Lighter ($10.14 billion) and Hyperliquid ($8.06 billion). This steep decline suggests that traders are migrating to higher-volume platforms, leaving Aster vulnerable to further weakness.
Technical Signals Point to Further Downside
From a technical standpoint, ASTER appears to be at a critical juncture. The token is trading between $1.03 and $1.14, a historically weak demand zone where rebounds have rarely sustained. Analysts warn that if bearish sentiment persists, ASTER could test lower support levels at $0.70 or even $0.50.
Momentum indicators further confirm the negative outlook. The Moving Average Convergence Divergence (MACD) recently formed a “death cross,” often seen before major downturns. Similarly, the Aroon Indicator shows strong bearish dominance, with the Aroon Down line significantly outpacing the Aroon Up signal.
Outlook: Bears in Control, but a Rebound Possible
For now, the momentum remains with the bears. Unless Aster’s fundamentals improve—through higher trading volumes or renewed investor interest—the token could continue sliding. However, if sentiment shifts, the current demand zone may serve as a short-term base for recovery.
In the short term, ASTER’s ability to hold above $1.00 will be key to determining whether the protocol can regain traction or face deeper losses.
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.
Also Read: Aster (ASTER) Surges 20% After Airdrop Announcement as On-Chain Liquidity Hits $2.16B
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
