The decentralized exchange token Aster (ASTER) plunged more than 20% in the last 24 hours. This drop erased the gains from the recent rally driven by Binance founder Changpeng Zhao (CZ). The ASTER token volatility after CZ’s endorsement was leveraged by an anonymous trader, who secured millions.
The sharp price correction generated massive gains for a trader known as the “Anti-CZ Whale.” This operator now holds over $21 million in unrealized profits from short positions on ASTER, distributed across two different wallets. The initial rally occurred last week. It happened after CZ publicly revealed that he had personally purchased over $2 million worth of the token.
On-chain data highlighted by Lookonchain shows the whale’s strategy. Immediately following CZ’s announcement, ASTER’s price jumped from $0.91 to a high of $1.26. However, the “Anti-CZ Whale” used this rally to open substantial short positions. As the token fell back below $0.90, these positions accumulated $18.4 million in latent profits. One wallet (0xbadb) entered its short at an average price of $1.16, now showing $8.38 million in gains. The second wallet (0x9eec9) holds positions in various cryptocurrencies, but ASTER contributes $14 million to its profits.
Has the “CZ Effect” Become a Contrarian Signal for the Markets?
This event highlights a market phenomenon where endorsements from influential figures can backfire. CZ’s purchase immediately triggered retail buying, but it also created a clear opportunity for experienced traders who bet against the hype. The ASTER token volatility after CZ’s endorsement demonstrates the risks of following influencer trends without one’s own analysis. ASTER’s 24-hour trading volume also fell sharply by 47%, settling at $1.35 billion, indicating a rapid decline in interest.
On the other hand, Changpeng Zhao reacted to the market slump. He admitted in a post on X (formerly Twitter) his history of poor timing with purchases. “Every time I buy coins, I get stuck in a losing position,” he wrote. He recalled buying Bitcoin at $600 in 2014 before it fell to $200. He mentioned that he recently increased his ASTER holdings but warned others to “be careful of risks.” CZ hinted that he may stop publicly revealing future purchases.
Despite the bearish sentiment, technical analysis suggests a potential short-term stabilization. Analysts are observing that the ASTER/USDT pair is forming a falling wedge pattern on the four-hour chart. This pattern often precedes a bullish reversal. If the price manages to break above the $1.01 resistance, it could trigger a recovery toward $1.20 or $1.50. However, a drop below the $0.85 support level would expose the token to further losses.
