Aster (ASTER) Token Burn Sparks Optimism: Could Price Hit $1.20 Soon?

• Aster burns 77.86M ASTER tokens worth $79.81M, permanently reducing circulating supply.
• The token rebounds from oversold levels near $0.91, showing early recovery signs.
• Technical indicators suggest potential upside toward the $1.15–$1.20 resistance zone.

Aster (ASTER) is moving in a downward direction with a depreciation in its value but also showing a potential for a trend reversal if conditions become favorable. 

However, the crypto analyst, Lookonchain, highlighted that the Aster ecosystem carried out one of its biggest supply cuts, with the buyback wallet burning 77.86 million ASTER worth $79.81 million an hour ago. The tokens were permanently removed through its buyback-and-burn mechanism, tightening the circulating supply. The move underscores Aster’s focus on stability and long-term sustainability.

Source: Lookonchain

According to experts, the burn can generate more confidence among investors due to scarcity. Although the team has not yet issued any statement regarding the burn, it is evident that the entire community is pleased with the move. In fact, it is interpreted to be a significant step towards aiding Aster’s market dominance.

Also Read: Aster (ASTER) Price Consolidates: Is This the Calm Before a $20 Surge?

ASTER Technicals Hints at Weakening Bearish Strength

From a technical perspective, it is evident that ASTER has been moving downwards, ranging from $1.20 to $1.01. ASTER recently tested the lower Bollinger Band at $0.91, which indicates an oversold level, and has started a mild recovery, although it faces resistance at the 20-day moving average of $1.13, and the upper band is set at $1.35, which could act as a target.

Source: TradingView

MACD has a weak bearish moment, and the MACD line (-0.04176) is slightly below the signal line (-0.03109), but it is getting closer, which gives an indication of having a possibility of consolidation and a minor correction. Overall, ASTER is having a bearish cycle, and support lies near $0.91, and any strong bounce shall require crossing above $1.13.

ASTER Builds Strong Momentum Toward $1.20 Target

Furthermore, the crypto analyst DonnieBTC reported that ASTER has rapidly rebounded following the recent dip and has returned to a very important demand zone, which is closely eyed by market participants. This demand zone has, in the past, represented a strong catalyst for buy positions due to increased attention by market players.

Source: DonnieBTC

If the trend is sustained, it is also expected to push ASTER towards the $1.15-$1.20 region, which is a significant level of resistance marked by swing highs. Traders are of the view that if buying pressure is sustained, it could trigger another phase of the bullish trend. With ecosystem activities sustained by Astra Labs, a possible breakout is on the cards.

Also Read: ASTER Price Outlook Strengthens as Chart Points to Breakout Toward $2.10