The price of the Astar (ASTR) token has suffered a significant setback in recent days. The cryptocurrency has lost over 40% of its value in just 10 days. This sharp correction coincides directly with the anticipation of a massive unlocking event. The data, coming from the Token Unlocks analytics platform, is generating strong selling pressure on the asset.
The massive sell-off intensified notably. ASTR broke an ascending support trendline that had been in place since June. This movement invalidated the previous bullish price structure. Subsequently, the token also lost the crucial horizontal support area of $0.042. According to reports from Token Unlocks, the scheduled event will release 380 million ASTR tokens. This figure represents a substantial amount of its current circulating supply.
Token unlocks are closely watched events in the crypto market. Generally, they introduce a new supply of tokens into the market. If demand does not absorb this new supply, the price tends to fall. The Astar price drop due to token unlock is a classic example of this dynamic. Investors appear to be selling in anticipation. They fear the increased supply will dilute the asset’s value once the tokens are released.
Will the Astar ecosystem be able to absorb the new supply?
Technical analysis shows clear bearish signals for ASTR. The daily Relative Strength Index (RSI) has fallen below the 50 level. This suggests that momentum is now in the hands of the sellers. If selling pressure continues, the next major support is near $0.030. The Astar price drop due to token unlock tests the resilience of its ecosystem. The Astar project is part of the Polkadot blockchain.
The situation for Astar (ASTR) remains delicate in the short term. Market participants will closely watch the unlock event. The price reaction after the release will be crucial. It will determine if the asset can find a new floor or if the bearish trend will extend. This situation is a clear reminder of how tokenomics directly influence the valuation of digital assets.
