Aster Forms Bullish Hammer At Key Support – Reversal Setup?

[Redator]

ASTER, the native token of the decentralized perpetual exchange Aster, officially launched last week and immediately made waves across the crypto market. Backed by Yzi Labs (formerly Binance Labs) and carrying the public endorsement of former Binance CEO Changpeng “CZ” Zhao, the token quickly drew massive attention from traders and investors.

Upon launch, ASTER surged to nearly $1.94, sparking excitement around its potential to rival leading decentralized derivatives platforms. However, the enthusiasm was quickly tested as the token dropped 33% to lows of $1.33 within days, reflecting the volatility often seen in new market entries. Despite this sharp correction, ASTER has since stabilized and recovered to trade around $1.57, showing early signs of resilience.

With CZ’s visible support and Yzi Labs’ backing, Aster positions itself as a formidable competitor to Hyperliquid in the decentralized perpetuals sector. The project’s narrative of combining deep liquidity, advanced trading infrastructure, and a strong ecosystem presence is already attracting both retail and institutional attention.

Aster’s Setup And Competitive Outlook

Top analyst Big Cheds recently shared a technical perspective on Aster, pointing to a bullish signal forming on the 1-hour chart. According to his view, ASTER printed a hammer candle with notable volume at the lower Bollinger Band breach, right near the 50-period simple moving average (SMA).

This type of setup often suggests strong accumulation at support levels and can serve as a precursor to a rebound. For traders, the combination of a lower BB breach and hammer formation indicates potential exhaustion of selling pressure and the possibility of renewed upside momentum.

The timing of this technical development is crucial. The broader crypto market has entered a volatile phase following aggressive selloffs across Bitcoin, Ethereum, and other major altcoins. While many tokens are struggling to recover, analysts argue that Aster is carving out a unique position, benefiting from strong institutional backing and favorable technical patterns. This resilience has led some to view ASTER as one of the more compelling short-to-midterm plays in the altcoin market.

Beyond technicals, Aster’s fundamentals add weight to this outlook. Positioned as a direct competitor to Hyperliquid, Aster is aiming to capture market share in the growing decentralized perpetuals sector. Backed by Yzi Labs and publicly supported by CZ, its ecosystem growth potential is considerable. Analysts believe that if momentum continues, Aster could see accelerated adoption, supported by both speculative interest and long-term infrastructure development.

ASTER Price Analysis: Technical Levels To Hold

The 1-hour chart of ASTER/USDT highlights the token’s volatile but constructive price action since launch. After an explosive surge to nearly $1.94, the price corrected sharply, retracing to the $1.33 level before finding support. The recent bounce has seen ASTER recover to around $1.49, signaling that buyers remain active at lower levels despite ongoing volatility.

The chart shows that ASTER is consolidating just under the 50-period simple moving average (SMA), currently near $1.51. This moving average has acted as both resistance and guidance for short-term momentum, meaning a decisive break above could trigger renewed upside momentum. Conversely, rejection here could lead to another retest of the $1.40–$1.33 support zone.

Candlestick patterns also suggest uncertainty, with repeated long wicks on both ends reflecting tug-of-war behavior between bulls and bears. However, the ability of ASTER to hold above $1.40 during periods of selling pressure indicates resilience.

Featured image from Dall-E, chart from TradingView