Despite making money in the past, a crypto trader now has $8.48 million in the red due to the 70% decrease in the Trump meme coin since its all-time high. Now what? Many variables, including the investor’s trading abilities and the market’s performance, contribute to the high-risk, high-reward nature of the cryptocurrency trading sector. This circumstance is eloquently described by one crypto trader and their extensive expertise. After making $22.7M in TRUMP coin in the first trade, the person lost $8.48M in the second trade.
Exciting Ride for Crypto Traders With TRUMP Coin
TRUMP, the official coin of US President Donald Trump, became popular among crypto fans quickly. This cryptocurrency merchant made millions as an early adopter. The trader failed to reinvest the coin. According to Lookonchain X, 1.03M TRUMP initially cost $1.79. The dealer sold all these tokens for $22.7 million once their value rose. This gave the person millions with their first TRUMP investment. Investors spent $16.7 million (309,514 TRUMP) on the same token and reinvested.
However, selling pressure lowered TRUMP joke coin prices. Due to the crypto market catastrophe and TRUMP’s 70%, the trader lost $8.48 million. Crypto Trader Loses: The Bitcoin market will always have winners and losers. Trump’s performance and power consolidation worry many. Despite its link with the US president, the meme coin has fluctuated, casting doubt on its comeback.
TRUMP Coin Could Gain Value Again
As soon as it went live, the Trump token quickly rose to the ranks of the most popular meme coins. It peaked at $75.35 on the same day it entered consolidation and then went into a full-blown downturn. The price of TRUMP has dropped 50% this week and is now trading at $26.16. A 26% drop in trading volume over the past 24 hours indicates that investor interest has diminished, as the market capitalization is $5.23B and the trading volume is $3.64B.
The Trump-themed meme token, on the other hand, is getting close to the $25.35 horizontal support line. An upswing might develop, sending the token soaring to $30.39, the crucial resistance level, if buying activity picks up and the price stays above this level. If prices can break above this local high, which is a guarantee of a full reversal of the downtrend, they will face resistance at $39.43 and beyond, which corresponds to the half-Fibonacci retracement. After that, the positive momentum can take over entirely, and investors should keep an eye on the Fibonacci extension levels of $77.77, $43.44, and $48.4.
Importance of Bear in Mind While Reading This Post
The recent moves made by this trader demonstrate the intrinsic volatility of cryptocurrencies. The extreme volatility of the cryptocurrency market is illustrated by the trader’s PNL drawdown. This occurred simultaneously as the Trump coin went into a full-blown slump, with a value loss of 70% from its eight-day-old all-time high.
The token’s present value is $26.16, but according to the Fibonacci extension, it can skyrocket to a maximum of $77.77. It must be remembered, nevertheless, that the voyage might not adhere strictly to the specified time frame. Crypto Trader Loses, Those looking to invest should do their homework to ensure their money is safe.
FAQs
How did the trader initially profit from TRUMP coin?
The trader invested $1.79 in 1.03M TRUMP tokens, later selling them for $22.7M during its peak.
Why did the trader lose $8.48M in the second trade?
The trader reinvested $16.7M in TRUMP coin, which lost 70% of its value due to selling pressure and market volatility.
Can TRUMP coin regain its value?
If buying momentum increases, TRUMP coin could rebound, with key resistance levels at $30.39 and $39.43.
What does this story highlight about crypto trading?
It showcases the extreme volatility and high-risk, high-reward nature of cryptocurrency investments.