The cryptocurrency market has experienced a cooling-off period following an energetic start to the week. Bitcoin (BTC) briefly surpassed the $111K mark before settling at $107,800. Ethereum (ETH) also saw a decline of over 4%, influenced by renewed tariff concerns. This market sentiment has impacted major altcoins, including Aster (ASTER).
ASTER has undergone a notable correction of 12%. However, an examination of its technical indicators reveals a more intricate picture. The token appears to be in the process of retesting a significant bullish breakout, a phase that could determine its immediate future trajectory, potentially leading to a continuation of its upward movement or a temporary consolidation.
Retesting Falling Wedge Breakout
In recent weeks, ASTER has been trading within the confines of a falling wedge pattern. This formation is widely recognized as a bullish reversal pattern, typically emerging after an extended downtrend. The price action gradually narrowed within the wedge as selling pressure diminished, with buyers showing increased accumulation activity around the $1.01 level.
This accumulation phase culminated in a decisive breakout above the wedge's resistance line, which was situated near $1.19. This breakout served as a confirmation of a potential shift in market structure. Following the breakout, ASTER experienced a rapid rally, reaching a local high of $1.25. Subsequently, short-term traders began to realize profits, leading to the recent pullback.
Currently, as illustrated in the accompanying chart, ASTER is retesting the breakout zone, which is approximately around the $1.07 mark. This level closely corresponds to the former resistance of the wedge, a region that frequently transitions into support following a genuine breakout.
What's Next for ASTER?
The upcoming trading sessions will be crucial for ASTER's price action. If buyers successfully defend the breakout area, a resurgence in buying pressure could drive prices back towards the recent local high of $1.25. Following this, the next immediate target would be the 50-hour moving average (MA), located at $1.2823.
Sustained momentum above these levels would serve to fully validate the falling wedge breakout. This validation could pave the way for ASTER to target its next significant technical level at $2.21, which represents a potential 100% upside from its current trading price.
Conversely, a failure to maintain support within the $1.07–$1.00 range could invalidate the bullish technical setup. Such a scenario would likely lead to ASTER returning to a consolidation phase before any subsequent upward attempts are made.
For the present, the technical structure remains constructive. The ongoing retest phase could prove to be a pivotal turning point, ultimately dictating whether ASTER resumes its uptrend or remains within a range-bound market in the near term.