Aster price plummets 20% as selling pressure weighs on altcoins.

The price of Aster (ASTER) has experienced a significant downturn, dropping nearly 20% to approach the critical support level of $1 as selling pressures intensify across the altcoin market. This comes in the wake of a historic peak of $2.42 reached in September, shedding significant market gains amid a wider cryptocurrency sell-off.

Aster’s Price Declines Sharply by 20%

On Friday morning, Aster’s price plummeted to a low of $1.08 on major exchanges, marking a steep 20% decline. After briefly trading above $1.36, the recent drop has positioned ASTER among the top losers in the market, alongside other tokens like Zcash, Mantle, SPX6900, and Morpho.

This dramatic decline extends a multi-day downward trend, following an inability of bullish traders to maintain gains near the $1.60 mark. Aster previously surged after bouncing back from lows witnessed during the cryptocurrency market crash on October 10.

In the past week, Aster has lost over 32% of its value, weighed down by profit-taking and broader macroeconomic pressures affecting market sentiment. The decentralized perpetual exchanges and the spot market built on the BNB chain had attracted substantial investor interest recently. However, enthusiasm appears to be waning as selling pressure mounts.

Bitcoin’s price dipped below $105,000 early Friday, witnessing a 4% decline over the last 24 hours, compounding the losses of several major altcoins, including Ethereum, Solana, and XRP, which have all retreated to crucial support levels or below.

What Lies Ahead as Aster Returns to the $1 Level?

Currently, Aster’s price is testing the psychological threshold of $1, a key level that bulls must defend to avoid further declines.

Recent price movements, as shown in the accompanying chart, indicate consolidation above this critical mark. However, the steep drop and the break of a descending triangle suggest that bulls may face continued challenges. The token’s all-time high of $2.42 from September 24 seems distant now.

Nonetheless, technical indicators such as the relative strength index (RSI) signal that Aster is in oversold territory, hinting that a exhausted selling could pave the way for a rebound. Any sustained downward pressure, however, could see support collapse below $1.00.

According to data from Coinglass, there has been a sharp decline in open interest for Aster, now standing at $477 million. Long positions have been hit hardest during the correction, accounting for nearly 90% of total liquidations, totaling over $10 million out of $12 million in the last 24 hours, with short positions only representing $1.73 million of the total.

For bulls, a decisive break above $1 remains crucial to regain momentum. Conversely, sustained selling pressure below $0.85 would likely give bears control of the market.