A Sharp and Unexpected Plunge Is Occurring in the Altcoin Backed by CZ—What Do We Know?

$ASTER, the token of the decentralized trading platform Aster, fell below $0.55 this evening due to accelerated selling pressure.

The token, which had fallen as low as 0.5263 $USDT on Binance, was trading around $0.543 at the time of writing. According to CoinGlass data, $ASTER’s loss in the last 24 hours has reached 19.5%, and its weekly decline has exceeded 20%.

The sharpest part of the sell-off lasted for about half an hour. $ASTER, which was seen at $0.6007 on CoinGlass, dropped to $0.5431 in the next measurement. There is approximately a 9.6% decrease between the two prices. On the Binance spot market, the highest level in the last 24 hours was 0.6586 $USDT.

Why Did $ASTER Fall? Long Positions Closed as Selling Speeded Up

On a day when Bitcoin fell to around $65,000, altcoins were also under selling pressure. As the decline in $ASTER accelerated in the evening hours, liquidations in futures contracts increased. On exchanges tracked by CoinGlass, $7.76 million worth of $ASTER positions were liquidated in the last 24 hours. Of this, $7.74 million came from long positions opened with the expectation that the price would rise.

Futures trading volume reached $337 million during the same period, while the total value of open positions in dollar terms decreased by approximately 16 percent to $308 million. The forced closing of leveraged long positions as prices fell may have increased selling pressure in the futures market.

1 Million $ASTER Sales Seen Earlier in the Day

According to LC Insight, citing DeepSea data, an unidentified wallet sold approximately 1.06 million $ASTER for $677,000 earlier in the day. The transaction occurred hours before the sharp drop in the market that evening.

*This is not investment advice.