Aster Price Soars 21% on Tokenomics Update, But Can It Hold?

Aster's tokenomics update sent shockwaves through the market, causing its price to surge by 21% in just one day. On June 17th, Aster announced that it would be using 99% of its daily platform fees to buy back and burn its native token. This move effectively increased the step up in buyback and burns to a staggering 198%, leading to a short-term price reaction.

However, this rally came within a larger consolidation phase, and a long-term uptrend has yet to be established. In fact, recent hours have seen a retracement, suggesting that market participants may view the price surge as a selling opportunity. The altcoin's price action has been influenced by the broader market, with Bitcoin struggling under a long-term downtrend.

The 1-day chart shows a bearish structure in place since October, with new lows being made throughout this period. For ASTER bulls to drive a rally and flip the swing structure bullish, they must push beyond $0.811. The latest attempt to do so was met with rejection at the $0.75-$0.80 supply area.

The 2-hour chart also reveals a bearish structure in progress, with the previous day's rally offering an opportunity for short positions in the $0.74-$0.78 region. Since this sweep, the price has reacted bearishly, increasing the chances of a move towards the $0.588 low.