On July 29, Aster (ASTER) released $1.37 million worth of tokens, with over 70% of that influx directed into staking and airdrops within its ecosystem. Despite this fresh supply, the altcoin’s price remained pinned near the bottom of its long-standing range, signaling a lack of volatility.
Buybacks have absorbed much of this new supply. A recent report revealed that 99% of protocol rewards are funneled into token buybacks, while unclaimed rewards cycle back as airdrops. Network activity is showing signs of life too, with fees hitting $341,000 on unlock day the highest daily total for the month indicating steady demand inside the protocol.
Nevertheless, the big question remains whether buybacks can keep up with the mounting supply before the price dips further. Leveraged traders seem to be banking on a rebound; ASTER's weighted funding rate held positive at 0.0068% even as price fell.
Technically, ASTER has been stuck between $0.595 and $0.775 since early February. Currently, it’s testing support near the lower end and trading below critical moving averages, pointing to ongoing selling pressure. The freshly unlocked tokens could add fuel to this bearish momentum if they flood the market.
Below the current price, a liquidation cluster exceeding $1 million sits near $0.58. Should the support break, this level could trigger another sharp decline. Without strong buying interest, the risk of a continued downward run is looming.
This content is for informational purposes and does not constitute financial advice.
