Aster (ASTER) experienced a sharp 19% plunge, hitting a two-month low of $0.85, following widespread rumors that Binance founder Changpeng Zhao (CZ) was offloading a massive amount of its tokens. The speculation, which alleged CZ sold around 35 million ASTER tokens valued at approximately $30.42 million, triggered a wave of panic among investors, leading to a cascade of sell orders and market volatility.
At its lowest point, Aster dropped from $1.05 to $0.85. However, the token managed to partially recover, rebounding to $0.93, and at the time of writing is trading near $0.92. Despite this bounce, Aster remains down nearly 8% on the daily chart and over 18% week-on-week.
The sudden sell-off was largely driven by unverified claims that a wallet associated with CZ had offloaded tens of millions of ASTER tokens. These rumors spread rapidly, leading to increased market anxiety and aggressive selling behavior. The resulting market activity gave rise to significant spot sell volume, which far exceeded buying interest during the same period.
However, blockchain analytics platforms like Lookonchain later refuted these claims, clarifying that the $34.53 million transfer of 31.84 million ASTER tokens was merely an internal movement between Binance hot wallets and not linked to CZ personally. This clarification helped reduce panic levels and encouraged some buying activity, aiding Aster’s partial rebound.
Despite the recovery, market data from Coinalyze showed that Aster still recorded a negative Buy-Sell Delta of -4 million, signaling continued dominance of sell orders. Total sell volume stood at 107 million, slightly surpassing the 103 million in buy volume during the last 24 hours. This imbalance further confirmed the selling pressure exerted by traders reacting to the rumor.
Adding to the downward momentum, on-chain data from Nansen indicated that top Aster addresses were also reducing their holdings, collectively selling off approximately 35.6 million tokens. Historically, such coordinated selling by large holders often precedes or coincides with extended bearish trends.
The derivatives market mirrored this bearish sentiment. Data from CoinGlass revealed that futures liquidations surged to a two-week high of $8.5 million, with $8.2 million worth of long positions wiped out. Additionally, futures outflows increased to $552 million, compared to $509 million in inflows, resulting in a net outflow of -$42 million—another sign of weakening confidence among leveraged traders.
Technical indicators also painted a bleak picture. The Stochastic RSI dropped sharply from 26 to 12, highlighting seller dominance and reduced buying strength. Meanwhile, the Relative Vigor Index (RVI) crossed into bearish territory, dipping to -0.138, indicating that downward momentum was gaining traction.
If bearish pressure continues to mount, Aster may test the $0.90 support level again. However, if buyers regain control and demand increases—especially in light of the clarified wallet activity—there’s potential for the token to reclaim the $1.00 psychological resistance in the short term.
Beyond the immediate price movement, the incident underscores how sensitive crypto markets remain to rumors and unverified information. In this case, a single unconfirmed claim about a prominent figure’s trading activity was enough to trigger millions in liquidations and a sharp price correction. This highlights the importance of transparency, accurate reporting, and cautious investor behavior.
Looking ahead, several factors could influence Aster’s price trajectory:
1. Investor Sentiment Recovery: Now that the rumors have been challenged by credible blockchain data, investor confidence may gradually return, especially if no further large transactions linked to CZ’s wallet are detected.
2. Whale Activity: Continued monitoring of top wallet addresses will be crucial. If these addresses begin accumulating ASTER again, it could signal a bullish reversal.
3. Market-Wide Trends: Aster’s recovery may also depend on broader crypto market conditions. If Bitcoin and other major altcoins show strength, the spillover effect could benefit ASTER.
4. Development and Adoption News: Positive updates from the Aster development team, including ecosystem growth or new partnerships, could help shift focus away from the sell-off narrative and back to fundamentals.
5. Regulatory Clarity: As regulatory scrutiny on centralized exchanges like Binance increases, clarity around token ownership and movements may become more common, potentially reducing the impact of similar rumors in the future.
6. Community Engagement: Proactive communication from Aster’s team addressing the situation could help reassure holders. Transparency and timely updates are critical during times of uncertainty.
7. Technical Support Levels: Traders will be closely watching key support and resistance levels. A decisive break and hold above $0.95 could pave the way for a move back toward $1 and beyond, while a drop below $0.85 may result in further downside.
8. Liquidity and Volume Trends: Monitoring trading volume and liquidity across exchanges will help gauge the strength of any recovery. Sustained high volume on up days is typically a bullish confirmation.
In conclusion, while the CZ sell-off rumor initially sparked panic and fueled a steep decline in Aster’s price, the market has shown signs of stabilization as the claims were contested. However, volatility remains high, and investor caution is warranted. The coming days will be crucial in determining whether Aster can regain upward momentum or if bearish pressure will persist.