• Aster records a 16% surge on Tuesday, preparing for a potential breakout of a supply zone.
• Derivatives data, including the futures Open Interest and Funding Rate, suggest renewed interest among traders.
• The technical outlook flashes bullish potential as ASTER trades above all crucial moving averages amid an impending Golden Cross pattern.

Aster (ASTER) edges higher by 16% at press time on Tuesday, overshadowing the nearly 8% loss from Monday. The Binance-backed perpetuals-focused Decentralized Exchange (DEX) token regains the retail demand, resulting in a surge in ASTER futures and funding rate. The technical outlook flashes bullish potential as ASTER reaches a one-month high, crossing the $1.2900 supply zone. 

Derivatives market shifts focus to Aster

Retail interest is shifting towards Aster as the broader cryptocurrency market struggles to sustain demand. According to CoinGlass, the ASTER futures Open Interest (OI) has increased by nearly 5% in the last 24 hours, reaching $615.78 million, suggesting that traders are building long positions. 

In line with increased demand, the OI-weighted funding rate is at 0.0144%, indicating that traders are bearing the premium rates to hold long positions. Typically, rates above 0.010% suggest strong demand among traders, anticipating further gains.

Aster regains bullish traction amid strong breakout chances

Aster surges above $1.3700 at the time of writing on Tuesday, marking the highest price since October 15. The DEX token aims for a successful close above the $1.2900 supply zone, which has acted as a strong resistance since October 17, on the 4-hour chart.

If successful, ASTER would confirm the breakout, potentially targeting the $1.5990 level marked by the October 13 high. 

Corroborating the trend reversal, the DEX token trades above the 50, 100, and 200-period Exponential Moving Averages (EMAs), with the 50 and 200-period EMAs inching closer for a potential crossover commonly called the Golden Cross pattern. This crossover would confirm the increased strength of the short-term recovery, potentially extending the breakout rally.

The Relative Strength Index (RSI) is currently at 68 on the 4-hour chart, performing a V-shaped rebound from the midline, which suggests renewed buying pressure. At the same time, the Moving Average Convergence Divergence (MACD) rises after a brief merger with the signal line, indicating that bullish momentum is renewed. 

Looking down, if ASTER fails to hold above $1.2900, it would nullify the breakout chances, potentially retesting the 200-period EMA at $1.1959.