ASTER Breakout Alert: Bullish Checkmate Pattern Signals Potential Trend Reversal

ASTER is now attracting increased attention due to the early confirmation of a bullish checkmate pattern, which is a common indication of a trend reversal. After a prolonged period of a trending range-bound market, the price movement is now indicating a stronger structure, hinting at the weakening control of the sellers while the buyers hold a retreat position.

Source: X

Indeed, the evolving trend here suggests the emergence of a possible bullish reversal setup and pattern that would become even more apparent with the confirmation of the breakout via follow-through buying activity. The apparent memories of the possible risks of a downside trend are fading, as more hopes are expressed about a possible recovery trend soon.

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ASTER Price Setup Signals Recovery toward $0.92

Moreover, another crypto analyst, Ardi, pointed out that ASTER is showing short-term optimism with a clean breakout at the local resistance level of $0.73, thus bringing an end to the two-week range-bound movement. This breakout is indicative of better short-term momentum and the fact that the bulls have started testing the breakout level from the recent lows. A successful retest of this breakout level may result in a move towards the $0.76-$0.79 range.

Source: X

Furthermore, the overall tech chart setup is still bearish despite the recent corrective bounce. A breakdown below $0.73 will significantly enhance the probability of a pullback towards the previous range and quite possibly retest $0.69. Far more important, however, is the fact that ASTER needs to retake $0.92 for a legitimate trend change to be established.

Momentum Indicators Hint at a Trend Reversal Ahead

Technically, price action reveals ASTER trying to consolidate and find support following a correction phase, as the candles remain above local support levels. Momentum seems to be shifting, as there seems to be waning momentum on the sell side. Even though there isn’t a clear trend, it appears that a new base can be formed.

Source: TradingView

In terms of momentum indicators, RSI (14) is currently at around 44.9. RSI has been bouncing from its lower levels, but it still has not crossed the middle line of 50. Also, the MACD indicator has switched its histogram to the positive zone, which suggests that there is growing momentum on the buy side. Even though the MACD lines are still negative, they are moving upward, which implies that there will be a positive cross soon.

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