How This Trader Lost Nearly $500K in 9 Days on PEPE Token?

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As a seasoned analyst with over a decade of experience in the financial markets, I have seen countless instances of FOMO leading to substantial losses for both novice and experienced traders alike. The recent case of the anonymous trader “0x4ec” who lost $500k on the PEPE token is a stark reminder of this phenomenon.

A recent NFT analysis found that the surge in BTC pricing beyond $100k generated 14,211 new millionaires and minted four fresh billionaires, sparking a sense of urgency or “Fear of Missing Out” (FOMO) among others aiming for similar success. Nevertheless, the crypto market is volatile, with potentially lucrative trades leading to substantial losses. In fact, one trader suffered a loss of approximately $500k due to impulsive trading in the PEPE token, influenced by FOMO.

How A Crypto Trader Lose $500k With PEPE Token?

In a recent post by Spotonchain’s AI-powered analytics platform, it has been disclosed that an unidentified investor is experiencing significant losses in their PEPE Coin holdings. While fluctuations in profit and loss are typical within cryptocurrency trading, the urge to jump on the bandwagon (FOMO) can sometimes result in financial setbacks, even when the investment is associated with a profitable asset.

On December 10, the trader “0x4ec” purchased approximately 60.782 billion PEPE for a total of $1.59 million, using 4.75 Wrapped Bitcoin (WBTC) and 150,000 USDC. At that moment, the token was trending towards a peak, but it soon entered a downtrend due to increased volatility as the PEPE price reached an all-time high (ATH). Instead of holding onto his PEPE tokens, the trader chose to sell them at a lower price out of fear of additional losses, incurring a loss of around $477,000.

PEPE leads the popular meme coin rankings due to its substantial earnings and outstanding growth throughout the year. Yet, unfortunately for one investor, they purchased PEPE when prices were already high, resulting in significant losses as the value decreased following heightened market volatility.

PEPE Token Downtrend Continues, 11% Lost Today

The Bitcoin price reached unprecedented peaks, making the crypto market flourish until recently. However, due to the fall of PEPE Coin and other cryptos in the market, triggered by the Federal Reserve’s 25 basis point rate reduction and Jerome Powell’s comments on Bitcoin as a reserve, the PEPE price has tumbled by 11% over the past 24 hours, now standing at $0.00001916. This decline started earlier, and on a weekly scale, the PEPE price has dropped by 24%. Consequently, its market capitalization and trading volume are currently $8.05B and $3.43B respectively.

The Nansen Data indicates a trend where sophisticated investors are pulling out of the market. This is suggested by the decrease in smart money holders of PEPE, dropping from 115 to 95 over a two-week period. However, several analysts view this as a typical correction for meme coins, often preceding larger surges.

However, according to the technical analysis, the PEPE token is in a bearish trend, with the RSI falling below 50 and the MACD and moving average representing sellers. A bullish move could happen if the Pepe coin moves past the key resistance at $0.00002821.

What’s In This For You?

The PEPE Coin lost the battle with the bears, ending with a 24% correction over the week. With that, the PEPE price has moved 32% away from the ATH, currently trading at  $0.00001916 under the seller’s presence. One such seller lost nearly $500k after he FOMO bought the token near the ATH and sold it when the token collapsed. Amidst this ATH-induced volatility and the crypto market crash, the PEPE price struggle is likely to continue until it bounces back above the key resistance at $0.00002821.

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2024-12-19 12:57