Will Astar (ASTR) Price Bounce? The Network Secures Animoca Brands' Backing

Astar (ASTR) price traded around $0.03, slightly in the green on the day, as bulls struggled to keep bears off. This comes as the Astar Network token has seen its native token plummet more than 10% in the past week, with technical charts signalling a potential downside continuation.

Astar (ASTR) price traded around $0.03, slightly in the green on the day, as bulls struggled to keep bears off.

This comes as the Astar Network token has seen its native token plummet more than 10% in the past week, with technical charts signalling a potential downside continuation.

But with a major partnership and investment from a leading blockchain gaming firm in the bag, can ASTR’s price bounce?

Astar Network gets Animoca Brands’ backing

The Astar Network team announced a huge move.

Astar is teaming up with Animoca Brands.

The companies announced their strategic collaboration on Wednesday, revealing that Animoca Brands had also made a key investment in Astar.

Animoca Brands is a leading venture investor in blockchain and Web3. The firm’s portfolio companies include Axie Infinity, Dapper Labs, and Beni Moelle.

Animoca Brands is also a major player in the blockchain gaming space. The company develops and publishes a wide range of blockchain games, including REV’s World, Bomberman: Chain Party, and Crazy Defense World.

Astar is a smart contract platform that is compatible with the Ethereum Virtual Machine (EVM). This means that Ethereum dApps can be easily ported to Astar, and Astar dApps can be deployed to Ethereum.

Astar is also focused on interoperability, and it is able to connect to other blockchain networks, such as Bitcoin and Polkadot.

Animoca Brands to help Astar expand in Japan, Asia

Part of what will be in focus is how Astar can be leveraged to expand Animoca Brands’ presence in Japan and Asia.

This move is about more than just bringing intellectual property on-chain. It’s about scalability and focus on consumer-facing experiences.

“The investment from Animoca Brands is not just about financial backing. It’s a strategic initiative aimed at driving long-term growth in Web3 entertainment. Animoca Brands sees the value in Astar’s unique position as a gateway for entertainment IP from Japan and Asia into the global digital ownership economy,” Astar Network wrote in its blog post.

As next steps, the two platforms will collaborate on further ways of driving adoption across Web3.

There are also plans for an Intellectual Property and entertainment-focused fund to be unveiled by the platforms.

Will ASTR price rally?

ASTR token traded at lows of $0.025 on May 7. However, amid network developments and a broader market uptick that followed, the altcoin surged to above $0.035.

Bears have since pushed Astar Network’s native token into the woods, with ASTR dumping over 10% in the past week.

On the daily chart, the Relative Strength Index (RSI) and MACD indicator signal bearish continuation, the latter having the histogram trending weak.

ASTR is, however, within a broad ascending triangle with the main resistance zone around $0.035.

If price dips below the trendline support, bears could target $0.022.

On the upside, a rally to December 2024 highs of $0.9 is possible amid a rallying crypto market.