ASTER Price Drop Incoming? Two Major Red Flags Emerge
Is ASTER Heading for a Correction? Watch These Red Flags
The launch of ASTER [ASTER] was marked by extreme volatility. After an initial surge of over 1,700%, the price corrected sharply as large holders took profits. Is history about to repeat itself?
Key Risks for ASTER
Why ASTER is Vulnerable
Extreme whale concentration and high leverage make ASTER susceptible to sudden sell-offs. The token's price is highly sensitive to the actions of a few major holders, creating a risk of manipulation.
Vesting Schedule Adds Pressure
Starting in mid-October, 53.5 million ASTER tokens will be released monthly. According to some analysts, even the top wallets may struggle to absorb this level of selling pressure, potentially triggering a price decline.
ASTER's initial price action resembled a classic pump-and-dump scheme. After reaching a high of $2, the price fell by 15.8% as whales, including one wallet that reportedly sold $60 million worth of tokens, took profits.
Open Interest in ASTER derivatives has surged to $822 million, a near 31% increase from the previous day. This influx of speculative capital, driven by high leverage, amplifies the risk of a sharp correction. While high open interest often signals strong market appetite, in ASTER's case, it may simply reflect risky, leveraged bets.
Supply Centralization: A Major Concern
ASTER's price volatility is exacerbated by its highly concentrated supply.
The top 3 wallets control 77.9% of the ASTER supply (6.2 billion tokens), with a single whale holding 44.7%. The top 10 wallets collectively hold 96% of the supply (7.69 billion tokens). This extreme concentration makes the token highly vulnerable to large sell-offs and market manipulation.
This level of supply centralization is more typical of low- to mid-cap tokens. With smart money potentially exiting at the top, concerns about ASTER's price stability are rising. The upcoming token unlock event could further compound these risks.
Given these factors, investors should exercise caution when trading ASTER. High volatility and the potential for significant price swings remain a concern.