As an experienced crypto trader who once turned $80,000 into a staggering $1.2 million with AURA, I’ve learned some hard lessons that I want to share with fellow traders out there. The thrill of such massive gains can cloud our judgment and lead us down the path of overconfidence and greed.
A Solana crypto trader turned his $80,000 into $1.2 million when he invested in AURA, a SOL meme coin. Unfortunately, he diamond-held the asset and ended up roundtripping the trade. This type of trading behavior is common among many newbies and some experienced traders who fail to take a profit, expecting a crypto asset to trend higher only to drop lower. Overholding an asset can happen to anyone when the potential of an asset is overestimated. What can be learned from this trade? Here are the details.
Crypto Trader Turns $80,000 to $1.2M
Three months back, Trader XCkM acquired 2 million AURA tokens priced at $4,943 each, as they were first introduced on the Solana blockchain. Later, he moved these tokens into his present digital wallet.
During June and July, this trader increased his holdings of AURA tokens in his investment portfolio, eventually reaching a total value of approximately $80,000. Subsequently, the price surge (or ‘pump’) of AURA tokens transformed his initial $80,000 into a staggering $1.22 million.
As an analyst, I embarked on a venture that carried a degree of risk, given the surge of rug pulls and fraudulent activities prevalent in the Solana ecosystem at this juncture. This underscores the necessity for me, as well as other users, to be vigilant and educate ourselves about crypto scams to navigate these treacherous waters safely.
On July 17, Trader XCkM completed his final transactions with AURA. He placed one purchase order and two sell orders, then stepped away, allowing his investments to mature.
Crypto Trader Round Trips His $1.2M in Profit
Despite reaching a market cap of $75 million, the value of AURA tokens started falling. Now, it has a market cap of $8.9 million. Despite the asset dropping by 86%, crypto trader XCkM continues to hold onto his investment and even sees a profit, as his current AURA holdings are worth approximately $144,000. Moreover, he is the third largest AURA holder, controlling around 1.6% of the total token supply, based on information from Bubble Maps.
Aura Price Analysis
It appears that the AURA price has hit its low point and is now on an upward trend. The daily chart of this coin suggests a possible round bottom formation, a pattern often associated with bullish reversals. This round bottom could also be part of a larger “cup and handle” pattern, potentially propelling the price up by 222% to reach $0.03.
Despite not fully recovering his lost profits, crypto trader XCkM’s current holdings (or “bag”) are set to skyrocket from $144,000 to an impressive $460,000, which represents more than a five-fold increase over his initial investment of $80,000. It remains uncertain whether the planned Solana sell-off by FTX could impact the value of AURA.
Based on information from Solscan, it appears that crypto trader XCkM is not a novice in this field. His wallet, used for purchasing AURA, has been active for over two years, suggesting he has considerable experience as an investor. However, during attempts to profit from additional increases in the AURA price, behaviors consistent with greed were observed.
The crypto space is riddled with expert traders making bad decisions due to greed and fear. Some clear telltale signs confirming a trader is greedy include having no trading plan, entering and rapidly exiting trades, overholding an asset, and overleveraging your portfolio.
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2024-09-12 15:30