Astar Network price went parabolic on Tuesday and then quickly pulled back as investors reacted to the network’s growth. The AST token is rose to an all-time high of $0.1440 and then pulled back to $0.1010. This price is still about 51% above the lowest level in June of this year. So, is Astar a good investment?
What is Astar Network?
Astar Network is a leading project in the blockchain industry. It is one of the top players in the Polkadot network, where it won the parachain auctions in February.
For starters, Polkadot is a blockchain project that was created by Gavin Wood, who was a co-founder of Ethereum. The project hopes to help developers launch parachains, which are heterogeneous products that can connect with other chains.
Polkadot lets developers participate in slot auctions, where they compete with each other. In addition to Astar, other notable parachains that have won these auctions are MoonRiver, Karura, MoonBeam, and Clover Tech among others.
Astar Network is the smart contract hub for WebAssembly (WASM) and Ethereum Virtual Machine (EVM) on polkadot. In other words, the network connects Polkadot to both Ethereum and Cosmos ecosystems. The developers hope that they will add more chains like Avalanche, Cronos, and Tron in the coming months.
According to its website, Astar Network has over $1 billion in total value locked (TVL). It has also helped to bridge Ethereum worth over $250 million.
The AST price is rising as investors cheer the network’s growth. For example, Star Swap, a decentralized exchange with NFT governance launched on the network successfully. It joined the network a few weeks after InsureDAO moved to the network. It lets users protect their deposited funds on DeFi against smart contract risks.
Astar Network also partnered with Band Protocol, one of the best-known oracle network. Therefore, while there are significant challenges in the industry, analysts expect that Astar will be a major platform in the blockchain industry.
Astar Network price prediction
The hourly chart shows that the Astar Network price went parabolic on Tuesday and then it quickly pulled back. This could be what is known as a pump and dump scheme. It has now moved below the 25-period moving average and is approaching the 50-period MA. It also crashed below the key support at $0.10, which was an important support level.
Therefore, I suspect that the AST price will continue falling as the dump continues. If this happens, the next key support to watch will be at $0.088, which was the highest point on June 10th. Some of the other coins that have gone through pump and dump recently are Lido, BurgerCities, and Contentos.