The cryptocurrency market lost over $200 billion in value on January 31st, with altcoins hit particularly hard. The ASTER token fell to a four-month low of $0.507, prompting its associated decentralized exchange, AsterDex, to activate a Strategic Reserve Buyback Fund. The fund utilizes platform fees to repurchase tokens, with the team having bought $137 million worth of ASTER over four months. Despite this, market data shows persistent selling pressure and significant investor liquidations.
The crypto market experienced a massive sell-off on January 31st, losing over $200 billion in total value. Smaller altcoins like ASTER were hit hardest, with its price dropping to a four-month low.
Amid the slump, AsterDex activated its Strategic Reserve Buyback Fund to support the token. The initiative directs daily platform fees toward targeted buybacks of the ASTER token.
The team has aggressively repurchased tokens to absorb market pressure over the past four months. They bought 248.08 million ASTER tokens, valued at $137 million, representing 1.6% of the circulating supply.
During the ongoing season 5, they purchased 38 million ASTER for $24 million. In just the past 24 hours, the team bought 2.9 million ASTER for $1.6 million.
Despite these efforts, market participants have continued exiting. Traders on both the Futures and Spot sides extended their selling, with long liquidations surging to a three-month high of $15 million.
Futures Netflow for ASTER fell 502% to negative $36.9 million, indicating aggressive Futures dumping. On the spot side, sell volume jumped to 79.6 million over 24 hours, a level not seen in over a month.
The altcoin’s Relative Strength Index (RSI) stood at 35, indicating seller dominance near the oversold region. ASTER also traded below all three key Moving Averages, signaling sustained downward momentum.
These conditions suggest ASTER could continue its trend and potentially breach the $0.5 support level. For a significant reversal, the token must climb above key resistance levels at $0.64 and $0.73.
