ASTER -508.56% in 24 Hours as Sharp Correction Continues

On OCT 8 2025, ASTER dropped by 508.56% within 24 hours to reach $1.942, marking a continuation of its severe downward trend. The asset has experienced a cumulative decline of 595.93% across both the 7-day and 30-day periods, with the one-year chart showing identical percentage losses. The sustained drop indicates a high level of market stress and investor exit, with little to no signs of near-term stabilization.

The decline has been particularly dramatic over the past week, where ASTER has faced consistent selling pressure. Analysts project further volatility ahead, though no clear reversal pattern has yet emerged. The absence of bullish signals or strong support levels suggests the price could continue to decline in the short term unless there is a fundamental shift in market sentiment or a major news catalyst.

From a technical perspective, ASTER has failed to hold key psychological and moving average levels, reinforcing bearish momentum. The Relative Strength Index (RSI) has plummeted into oversold territory, yet this typically does not serve as a strong signal for a reversal when accompanied by strong bearish fundamentals or liquidity constraints. Price action has shown a lack of buying interest at lower levels, with each rebound attempt ending in renewed selling.

The 50-period and 200-period moving averages remain in steep decline, with the shorter-term line continuing to trade below the longer-term indicator. This bearish crossover pattern, combined with the extended period of declining volume and price, suggests the downtrend remains intact. Traders and investors are closely watching for signs of exhaustion in the sell-off or the emergence of a new support level.

Backtest Hypothesis

A backtesting strategy was developed to assess potential trade opportunities during ASTER’s recent decline. The approach focused on technical indicators, including the RSI, moving averages, and price-volume dynamics. The hypothesis tested whether a mean-reversion strategy based on oversold RSI levels could yield profitable short-term trades, despite the overall bearish context.

The strategy entered long positions when the RSI crossed below 30, with a stop-loss set at a 5% margin below the entry price and a take-profit level at a 10% gain. Short positions were also considered when the RSI crossed above 70, but given the overall trend, the long-side backtest was prioritized. The results indicated limited effectiveness in capturing profitable trades, as the asset continued to trend downward even after entering oversold conditions. The lack of a defined support level and continued selling pressure undermined the mean-reversion assumption, reinforcing the notion that technical entry points are insufficient in the absence of a broader market reversal.