ASTER Experiences a 20% Drop as “Anti-CZ” Whale Reaps $21M in Profits from Short Positions

In a recent turn of events, Aster (ASTER), a popular decentralized exchange (DEX) token, has seen a sharp decline of over 20% within a 24-hour period. This drop comes on the heels of significant short-selling activity from an investor nicknamed the “Anti-CZ Whale,” who has made substantial profits from betting against the token.

Key Takeaways

ASTER plummeted over 20% following significant trading activity and short-selling.
The “Anti-CZ Whale” reportedly gained $21 million in profits from shorting ASTER.
CZ’s endorsement initially led to an increase in ASTER’s price, which later reversed.
The overall trading volume of ASTER has decreased significantly, signaling reduced market activity.
Despite the downturn, analysts suggest the potential for a technical rebound could occur soon.

ASTER's Price Fluctuations and Whale Trading

Aster (ASTER), recently among the most talked-about tokens in the decentralized exchange space, has experienced a dramatic drop of more than 20% over the last day. This decline has largely erased the gains made after Binance founder Changpeng Zhao (CZ) announced his personal investment of over $2 million in ASTER.

The sudden market shift has been highly profitable for the trader known as the “Anti-CZ Whale,” who now reportedly holds unrealized profits exceeding $21 million from short positions taken on ASTER with two wallets.

Profits of the “Anti-CZ Whale”

Following CZ's announcement, a large influx of buying activity drove ASTER’s price from approximately $0.91 to a peak of $1.26. However, as whales, including the Anti-CZ Whale, increased their short positions, the token's value reversed sharply.

Recent on-chain data from Lookonchain and Hyperliquid indicates that two wallets linked to the Anti-CZ Whale have established substantial short positions, controlling over $51 million in ASTER shorts. This has led to unrealized profits of about $18.4 million as ASTER fell below $0.90.

One wallet, identified as 0xbadb, holds around $24.6 million in assets and is primarily focused on trading ASTER and Dogecoin (DOGE). Currently, it shows an unrealized profit of $8.38 million, attributable to its ASTER short position that dropped from $1.16 to $0.88, marking a 25% decline.

The second wallet, 0x9eec9, appears to have a larger investment portfolio worth approximately $73.7 million, encompassing various assets including ASTER, DOGE, ETH, XRP, and PEPE, and has achieved over $29 million in unrealized gains, with ASTER alone contributing around $14 million.

Profit Breakdown of ASTER and Other Assets Visual Overview of Whale Positions

Both wallets are heavily leveraged, maintaining short exposure between 3x to 20x, with the total unrealized profit across Hyperliquid approaching $100 million.

Market Reactions and Technical Analysis

The trading volume for Aster has dropped sharply to about $1.35 billion, a decline of 47% from prior levels, suggesting waning market enthusiasm post-rally.

Trading Volume Decline Chart

Once priced as high as $2.41, ASTER is now down more than 63% from its all-time high. In the past day alone, it has declined by 13.3%, dropped 17.8% over the week, and nearly 57% in the past month.

According to data from DefiLlama, the total value locked (TVL) in Aster has plummeted from $2.5 billion in early October to roughly $1.47 billion today.

CZ has acknowledged the current market struggles, admitting to a history of poor timing with his cryptocurrency purchases on social media. He shared past experiences where his buying decisions led to losses, stressing caution concerning future investments. Moreover, he suggested that moving forward, he may refrain from publicly announcing his purchases to avoid swaying market dynamics.

Despite the recent downturn, some market analysts see signs that ASTER might be close to a short-term rebound. Chart patterns show that the ASTER/USDT pair is forming a falling wedge pattern on the four-hour chart, typically indicating a potential reversal.

Technical Analysis Image

The price currently hovers around $0.95, with signs that selling pressure is diminishing. A breakthrough above $1.01 might signal a recovery towards $1.20 or $1.50, provided buying momentum returns. Conversely, a dip below $0.85 could subject the token to further losses, with support levels near $0.76.