- The Astar community finished voting on the token burn proposal on June 2nd.
- Prior to the mid-June price movement, ASTR was trading below $0.070 in late November.
Star [ASTR] At the time of writing, it was trading down 6.63% in tandem with the broader cryptocurrency market amid concerns over a worse-than-expected U.S. inflation outlook.
This latest price movement comes just one day after the Astar community voted in favor of burning 350 million ASTR tokens, representing 5% of the total supply at genesis.
ASTR Token Burn Execution Timeline
The Aster Foundation had reserved tokens for Polkadot’s parachain auction, a mechanism for projects to secure parachain slots on Polkadot. [DOT] Relay chain.
Blockchain projects essentially submit bids in DOT native tokens to the Relay Chain as part of a candle auction process to determine which projects will connect to a parachain slot for the duration of a particular lease.
However, Polkadot has announced that it will phase out the parachain auction system in November 2023 and replace it with Agile Core Time or Bulk Core Time.
In light of the updated mechanism, the Aster Foundation was suggested As part of our strategy to improve ASTR’s tokenomics, we are removing the allocation from circulation.
The 74 million ASTR rewards from this initial token allocation will be held by the community treasury and used to fund other initiatives.
Maarten Henskens, President of the Aster Foundation Confirmed The proposal has passed the voting stage, and the implementation phase of the token burn will begin by the end of this week, he added.
ASTR/USDT Technical Analysis
News of the vote results saw ASTR prices briefly surge to an intraday high of $0.0791.
CoinMarketCap data ASTR’s 24-hour trading volume can be seen rising from $20 million on Monday to more than $78 million on Tuesday.
Some exchanges, including Binance, [BNB]ASTR rose to $0.80 before reversing and declining.
ASTR subsequently fell and was one of the worst performing tokens on the day, down nearly 7% to $0.0705 at press time. The ASTR/USDT chart highlights the price movement over the past two weeks.
Source: TradingView
Over the weekend, ASTR/USDT fell below $0.069, highlighting the struggles of the two-week bull run since dropping above $0.075 on June 17.
Source: TradingView
The ASTR/USDT 4-hourly chart shows that ASTR price is attempting to break out of consolidation at the current lower levels and has established support near the $0.063 level.
Source: TradingView
ASTR price traded below the 23.6% Fibonaci minor retracement level ($0.0732) on an hourly basis.
Bullish speculators can aim to secure the key support at the more significant 0.382 Fib level at $0.0745 on the way towards the crucial 0.618 Fib level at $0.0767 where a price reversal is expected.
Any potential upside above this target is expected to be heavily tested at $0.0782, near the 0.786 Fib level.
ASTR showed signs of overbought on the hourly chart earlier this week, with the RSI reaching above 70 on July 1st.
Source: TradingView
However, following the crypto market decline over the past 24 hours, the RSI has been trending below 50 and is currently at 34.98. A drop below 30 would provide an ideal entry opportunity for short-term positions.
Growing the ecosystem
Astar Network continues to evolve its ecosystem and recently launched the Astar zkEVM.
Leveraging Polygon’s zero-knowledge technology, the L2 scaling solution is the first blockchain to integrate Polygon’s cutting-edge technology, AggLayer.
