Aster (ASTER) rose 4% at press time on Thursday, marking the third day of an uptrend to challenge the local resistance trendline. A positive shift in retail sentiment, coupled with utility expansion acting as collateral on its core derivatives trading platform, which includes an 80% margin ratio, could catalyze a trendline breakout rally.
Astor’s utility update and changes in retail sentiment
Sustainable-focused decentralized exchange (DEX) Aster announced the expansion of its native token, ASTER, as collateral with an 80% margin ratio, which refers to the loan-to-value ratio. With the leverage available on Aster Perpetual, a positive change in trader sentiment is visible.
CoinGlass data shows a 5.87% increase in ASTER Futures Open Interest (OI) over the last 24 hours, indicating the creation of long positions. Additionally, the OI-weighted funding rate is -0.0100%, down from -0.0423% earlier in the day, indicating a decline in trader sentiment willing to pay a premium for bearish positions.
Aster’s recovery has reached a key resistance trend line
Aster trades above the 100-period exponential moving average on the 4-hour chart, challenging the local resistance trendline near $1.1500, formed by connecting the swing highs of October 6 and November 2.
If Aster marks a decisive close above this level, it could confirm an upward breakout of the trendline, extending the rally to the $1.2977 level marked by the October 14 low.
Technical indicators on the 4-hour chart indicate a continued increase in buying pressure, as the Moving Average Convergence Divergence (MACD) remains in an uptrend after breaking above the zero line on Wednesday. Furthermore, the upward trend in the Relative Strength Index (RSI) has reached 60, indicating that the bullish momentum is still below the overbought zone.
Looking below, if the reversal from the trendline closes below the 50-period EMA at $1.0338, the psychological mark of $1.0000 and the October 22 low at $0.9304 could act as key support levels.
