ASTER is currently experiencing significant selling pressure, marked by a series of lower highs and lower lows. Despite occasional rebounds and brief consolidations, the overall trend remains downward. Market participants are witnessing a consistent pattern of selling, as the price struggles to maintain upward momentum.
Recent trading behavior reveals that while the cumulative net long positions are increasing, the number of shorts is declining. This trend suggests that long traders are persistently adding to their positions, even as the price continues to weaken on the Binance perpetual futures market. This imbalance poses risks for over-leveraged traders who may face liquidation events as they are forced to exit their positions during price declines.
The liquidity heatmap provides additional insights, indicating significant resistance in the $1.20 to $1.40 range, while strong support is evident around $0.90 to $1.00. These liquidity clusters are influencing the price movements and potential liquidations, guiding market dynamics.
Currently, ASTER”s price has stabilized around $0.93 to $0.94, forming what could be a potential base. However, without confirmation of a reversal, market sentiment remains bearish. The candlestick patterns indicate a decrease in volatility, pointing to hesitance among buyers to re-enter the market.
As the market continues to exhibit signs of exhaustion, traders are facing sustained pressure. Previous attempts to rally have not held, reinforcing the notion that sellers are firmly in control. The absence of a higher low or breakout raises concerns that the downtrend may persist without significant intervention.
On the trading front, top traders on Binance have maintained a net-long bias fluctuating between 66% and 74%. However, this proportion recently dipped to approximately 68%, suggesting a slight erosion in long confidence as prices decline. The ongoing presence of dense liquidity levels indicates that while minor upward movements may occur, substantial downward pressure remains possible.
This structural analysis highlights that ASTER”s market dynamics are heavily influenced by liquidity-driven activity, which aligns with the broader trend of decline. As long positions grow amid a persistent downtrend, the likelihood of further downward moves increases if market sentiment fails to change.
